23 Mar Corporate Update
The Company announces an update on certain corporate matters.
The Company issued a Supplementary Prospectus on 26 February 2021, which contained historical financial information for the periods ended 8 February 2019 and 28 February 2020 for Umuthi, and its wholly owned operating subsidiary, Lems Pharmaceutical Limited (“Lems”), as well as the unaudited interim historical financial statements for the six month periods ended 31 August 2019 and 31 August 2020 for both companies. Throughout the process of application for Admission, the parent and subsidiary were reported on a stand-alone basis. Umuthi will present consolidated financial statements for the first reporting period post Admission, being 28 February 2021.
Umuthi is the holding company of the Group. It has no bank account at this stage and its only expenditure pertains to expenses incurred in connection with Admission. These expenses are paid by Lems and are accounted for by way of intercompany loan accounts. Umuthi currently has no independent source of income. The operations of Lems generate the cash flow for the Group to fund its own, as well as Umuthi’s, operations.
In the days following Admission, the then auditors of Umuthi, on a standalone basis, PKF Littlejohn, advised the Financial Conduct Authority (“FCA”) and the Company’s Board of Directors, that due to what they perceived to be a procedural issue, they did not deem their audit report as contained in the Supplementary Prospectus as finalised or issued. The auditors to Lems, PKF Octagon in South Africa, had no similar issues and deemed their report finalised and issued.
This situation placed a strain on the Company’s relationship with PKF Littlejohn, who as per the announcement dated 22 March 2021, tendered their resignation on 10 March 2021. Their letter of resignation is available on the Company’s website.
The Company, following consultations with its UK-based advisers, appointed new auditors, Jeffreys Henry LLP (“Jeffreys Henry”), who have concluded an audit on the historical financial information for Umuthi for the periods ended 28 February 2019 and 28 February 2020. The Board are pleased to note that following the audit, it can be confirmed that there have been no changes or amendments to the information on Umuthi as contained in the Supplementary Prospectus dated 26 February 2021.
Jeffreys Henry’s reports and the accompanying historical financial information for Umuthi and Lems, are available on the Company’s website www.umuthiplc.com
The Directors thank the audit team and partner at Jeffrey Henry for their assistance in the resolution of this matter.
The Company is currently in discussions with the FCA regarding the resumption of trading in the Company’s shares on the Main Market of the London Stock Exchange and further announcements will be made in due course.
Capitalised terms not defined in this announcement have the same meaning as in the Supplementary Prospectus dated 26 February 2021.
|Umuthi Healthcare Solutions PlcGert Viljoen, Chief Executive Officer||Via IFC|
|Info@Umuthiplc.comIFC Advisory LtdGraham HerringZach Cohen||Tel: +44 (0) 20 3934 6630|