Investor Communication - Letter
12 October 2018
Dear Investor
Many have spoken and written about the class action application law suit and the ongoing litigation surrounding your claimagainst Orthotouch, and while some time has passed, it has become increasingly important to appeal to all of you to carefully consider your view and participation to safeguard your investment.
The overwhelming majority of investors wish to secure their investments, interest and settlements and in order to do so, I appeal to you to support me and my commitment to pay you in accordance with the scheme of arrangement which is the only workable solution.
As you know, this saga goes back more than eight years when you invested in the Highveld Syndication Companies. When the companies experienced financial distress and wereplaced into business rescue and I agreed to buy all the properties (HS 15-22) from the Syndicationsin the name of Orthotouch, underwritten by Zephan Properties (Pty) Ltd ultimately altering the rights, values, voting rights and also forfeiting the buy-back arrangements.
It is becoming increasingly difficult to continue with the payment options as attorney JacquesTheron from Theron & Partners Stellenbosch, wrongly informshis minority supporters in the HSAG that he is achieving success with a class action and now also misled them with a buy back option claim in HS 21&22 . All Theron’s legal actions did is to ensurethat my company is notable to raise capital to honour our promise to you. If you allow him to continue on this destructive path it will put further pressure on our finances while he will continue to charge his excessive fees which already exceeds R45mil for little or no return. It’s all about money and the ridiculous settlement fee of R64 mil(which included a R25 million “negotiator” fee) asked by Johan Stander & Theron at a meeting in March 2017 at Stellenbosch, which I refused to pay, is proof thereof(a copy of Johan Stander’s handwritten settlement fee proposalis attached).
Your support is required to stop Mr Theron’s class action,court actions and all other litigation including false promises of buy back recoveries which will lead to the liquidating of theCompanies involved and will be disastrous for all investors.
It is not our intention to respond to all the misinformation or ‘fake news’ that is being spread by Mr Theron and his HSAG committee, but I feel it is important that you understand that this has affected the reputation of my company and impacted on funding applications.
I remain committed to my promise on the scheme of arrangement and in particular to those who have indicated their support.
I will continue to communicate with you on a regular basis to keep you updated on importantinformation.
Yours sincerely
Nic Georgiou
Geagte Belegger
Baie is reeds bespiegel en geskryf oor die klasaksie aansoek en gepaardgaande litigasie m.b.t. u eis teen Orthotouch,en terwyl tyd verby vlieg isdit nou baie belangrik dat u deelname aan en u standpunt ten opsigte hiervan in oënskouneem om u belegging(s) te beveilig.
Die oorweldigende meerderheidbeleggers verkies eerder om hul beleggings, rente inkomste en skikkings te versekeren om dit te bewerkstellig doen ek n beroep op beleggers om my te ondersteun ten einde my voorneme om u ingevolge die reëlingskemate betaalte kan uitvoer aangesien dit die enigste werkbare oplossing is.
Soos u welvan bewus is gaan hierdie saga al vir meer as 8 jaar aan,sedert u in die HoëveldSindikasie Maatskappye belêhet. Toe die HS Maatskappye finansiëleproblemeondervind het en in Besigheid Redding geplaasis, het ek ingestem om al die eiendomme (HS15-22) by die Sindikasies te koop in naam van Orthotouch, onderskryf deur Zephan Properties (Pty) Ltd wat wysiging van regte, waardes, stemreg tot gevolg gehad het asook die verbeuring van enige terugkoop ooreenkoms.
Op die oomblik word volgehou betaling van al die opsies geweldig bemoeilik deurdat Jacques Theron van Theron & Vennote te Stellenboschsy HSAG ondersteuners mislei met sogenaamde suksesse behaal met sy klas aksie geding en hul nog verder mislei met eise wat hy ingevolge HS 21&22 terugkoop ooreenkomste wil instel. Al wat Theron met sy litigasie tot dusvêrbereik het is dat my maatskappy dit baie moeilik vind om finansieringte bekom om besigheid te kan doen om ons beloftes aan beleggers na te kom. Indien u hom toelaat om voort te gaan op sy vernietigende pad gaan dit net meer negatiewe druk op ons finansies plaas terwyl hy voortgaan om ongekende fooie te hefwat reeds meer as R45 miljoen beloop vir geen of baie min vordering in bykans 5 jaar. Dit gaan egter net oor eie gewin en die belaglike R64 miljoen skikkings fooi(wat R25 miljoenonderhandelingsfooiinsluit)wat Johan Stander & Theron van my wou vorder tydens n vergadering in Maart 2017 te Stellenbosch, wat ek geweier het om te betaal, is bewys daarvan.(Afskrifvan Johan Stander se handgeskrewe skikkingsfooi voorstel is aangeheg).
U ondersteuning word benodig om Mnr Theron se klasaksie,litigasie en ander aksies wat insluit vals beloftes ten opsigte van terugkoop ooreenkomste te stuit wat uiteindelik tot die likwidasie van die Maatskappyebetrokkekan lei en absoluut rampspoedig vir alle beleggers sal wees.
Ons verkies om nie op al die vals inligting en “fop nuus” wat deur Mnr Theron en sy HSAG bestuur versprei word te reageer nie, maar is ek van mening dat u bewus moet wees van die negatiewe impak wat dit op my maatskappy se reputasie heten gevolglik aansoeke vir befondsing beïnvloed.
Ek bly verbind tot my onderneming ingevolge die reëlingskemaen in besonder teenoor die beleggers wat hul steun aan die skema toon.
Ek sal op n gereelde basisn skrywe aan u rig insake belangrike inligting.
Die uwe,
Nic Georgiou