FRT - Faritec Holdings Limited - Further cautionary announcement

FRT
FRT                                                                             
FRT - Faritec Holdings Limited - Further cautionary announcement                
Faritec Holdings Limited                                                        
(Registration number 1998/004872/06)                                            
Share code: FRT                                                                 
ISIN: ZAE000016838                                                              
("Faritec" or "the Company")                                                    
FURTHER CAUTIONARY ANNOUNCEMENT                                                 
Shareholders are referred to the previous cautionary announcements (the last of 
which was dated 3 March 2010) in relation to the fund raising being undertaken  
by the company and are advised that:                                            
-  Shoden Data Systems (Pty) Ltd ("Shoden") and certain members of the          
Faritec management team 
(the "Management Consortium") have committed to     
    contributing R30 million of fresh equity into the company by partially      
    underwriting a R60 million rights offer, subject to a number of conditions; 
-  these conditions include the implementation of a scheme of arrangement       
(pursuant to section 311 of the Companies Act) (the "scheme") between        
    Faritec Enterprise Solutions (Pty) Ltd and its creditors, in terms of which 
    the various classes of creditors will be asked to either convert their debt 
    to Faritec equity or compromise their debt. Shoden and other creditors to   
the value of R25 million have already indicated their willingness to        
    convert debt into equity;                                                   
-  on receipt of sufficient irrevocable undertakings from creditors to          
    support the scheme, Shoden and the Management Consortium have agreed to     
immediately advance R30 million to Faritec as a bridging loan 
pending the   
    implementation of the rights offer.                                         
The objective of the scheme and the rights issue is to strengthen the           
Company`s balance sheet by converting debt to equity and injecting fresh        
equity to support the completion of the Group`s restructuring. If the scheme    
and the rights offer are implemented, the Board is of the opinion that Faritec  
will be well positioned to recover strongly.                                    
The Company will now formally engage with creditors to finalise the terms of    
the scheme. Although the implementation of a scheme and the rights issue could  
take approximately 12 weeks, this will be expedited by obtaining irrevocable    
undertakings from creditors to vote in favour of the scheme. Faritec anticipates
being in a position to announce the precise terms of the scheme and the levels  
of support from creditors within a week of the date of this announcement and    
shareholders 
are advised to continue to exercise caution when dealing in their  
Faritec securities until a further announcement.                                
10 March 2010                                                                   
Sponsor                                                                         
Java Capital (Proprietary) Limited                                              
Date: 10/03/2010 11:22:02 Produced by the JSE SENS Department.                  
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