Umuthi Healthcare Solutions PLC Further Update (7407P)

TIDMUHS

RNS Number : 7407P

Umuthi Healthcare Solutions PLC

21 October 2021

Umuthi Healthcare Solutions PLC

(the "Company")

Further update on the suspension of trading, trading and going concern update and Board change

Temporary Suspension of Trading

The Board of Directors of Umuthi wishes to provide shareholders with a further update regarding the temporary suspension from trading in the Company's Ordinary Shares on the Standard Listing segment of the Official List of the UK Listing Authority ("Standard List").

As announced on 10 June 2021, the FCA temporarily suspended trading in the Company's shares as a result of its concerns regarding some Company shareholders ("Shareholders") who were involved in a share exchange agreement prior to the Company's Admission to trading on the Standard List, not being able to trade all of their shares. This was due, in some instances, to share trading accounts not having been fully activated.

The Board of Directors has recently been informed of additional Shareholder concerns as regards external share exchange agreements entered into prior to the Company's listing. The Board of the Company has obtained legal advice on the issues raised by shareholders and will shortly be discussing its conclusions with interested parties, including the FCA. Based on the legal advice obtained, the Board is of the view that the concerns raised relate to third party over-the-counter share transactions between private individuals and do not involve the Company or its Directors.

The Board of Directors announce that a Company director, Mr. Gert Viljoen, was arrested in the Republic of South Africa and has been released on bail. Although charges have not yet been formally put to him, the allegations appear to relate to over-the-counter sale of Umuthi shares, transactions over which the Company and Mr. Viljoen had no control or involvement.

A further update will be issued in due course.

In addition, a consultant to the Company, Connie van Nieuwkerk was arrested as part of the same allegation of over-the-counter sales of Umuthi shares. Ms van Nieuwkerk had no operational role at the Company. As a result of the arrest the Company has terminated forthwith the consultancy agreement with Ms van Nieuwkerk.

Financial statements

The Annual Report and Accounts of LEMS and Umuthi Healthcare Solutions (Holding Company) are in the process of being finalised and will be released as soon as practicable.

Trading Update

The effect of the COVID pandemic and various lockdowns has hampered the Company's ability to expand operations and advance supply arrangements in the initial planned timelines. As a result targets have not been achieved for the current Financial period.

The LEMS warehouse license was renewed and approved on 8 October 2020 and is valid until 8 October 2025. The warehouse was temporarily closed from early 2020 due Covid 19 Lockdown regulations and cost efficiencies.

The Company has expanded its product range from just pharmaceuticals to include medical devices, consumables and other equipment required for medical practitioners and has been in discussion with certain distributors to support and expand the Umuthi MedTech supply and distribution capabilities once the Company's listing is restored.

Management

The Company is currently undergoing a management restructuring and is working on its business plan which will establish the strategy for future operations. Taking into consideration the prolonged COVID pandemic and the impact of suspension of trading the Umuthi business plan requires amendment .

Going Concern

Management is working on securing financing from shareholders and remain confident of the viability of the Company with their continued support.

The Board of Directors would like to highlight that as a result uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern without shareholders continued support.

Directorate change

Mr. Phillip van Huyssteen resigned as Director and CFO of Umuthi Healthcare Solutions giving the Company an opportunity to seek a more suitable candidate based in the UK. The Board of Directors is currently seeking a suitably experienced UK based replacement to take the restructured business forward upon restoration of the listing.

The Directors accept responsibility for this announcement.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

Enquiries:

 
 Umuthi Healthcare Solutions Plc   [+27 82 783 9586 SA] 
  Chairman of the Board 
  Adv. Shaun Gresse

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October 21, 2021 02:00 ET (06:00 GMT)

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