Afinitas : Circular to Afinitas Shareholders

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

The definitions and interpretations commencing on page 4 of this Circular apply mutatis mutandis throughout this document including this cover page.

Action required:

If you have disposed of all of your Shares, this Circular should be forwarded to the purchaser to whom, or the agent or broker through whom, you disposed of your Shares.

If you are in any doubt as to the action that you should take, please consult your agent, broker, banker, legal advisor, accountant or other professional advisor immediately.

This Circular does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of, issue or purchase any security in any jurisdiction. Any transaction contemplated by this Circular is conditional upon the passing of the applicable special resolutions.

Afinitas and the Directors, and any of their respective affiliates or associates, do not accept responsibility and will not be held liable for any act of, or omission by, any broker, including, without limitation, any failure on the part of the broker or any registered holder of Shares to notify the holder of any beneficial interest in those Shares or any other matter set out in this Circular.

Afinitas Limited

(Incorporated in the Republic of Botswana) (Registration number BW00001543844)

("Afinitas" or the "Company")

CIRCULAR TO AFINITAS SHAREHOLDERS

Relating to:

• • the termination of the listing of the Shares from the Venture Capital Board of the BSE; and

• • an exit opportunity for Shareholders and including

• • a fair and reasonable report prepared by the Independent Expert in terms of the BSE Listing

  Requirements and attaching

• • a notice convening a General Meeting of Shareholders

• • a Form of Proxy in respect of the General Meeting for use by Shareholders

Date of issue: 12 February 2021

This Circular is available in English only. Copies of this Circular may be obtained from the registered office of Afinitas and the Transfer Secretaries whose addresses are set out in the "Corporate Information and Advisors" section of this Circular. This Circular will also be available in electronic form from the date of issue of this Circular on Afinitas' website athttps://afinitas.co and the BSE's websitehttps://www.bse.co.bw/AFIN/

BSE DISCLAIMER

The BSE's approval of this Circular should not be taken as any indication as to the merits of the Delisting. The BSE has not verified the accuracy and truth of the contents of the documentation submitted to it and the BSE accepts no liability of whatever nature for any loss, liability, damage or expense resulting directly or indirectly from the Delisting.

SALIENT DATES AND TIMES
Circular, including notice of a General Meeting, to be distributed on X-News and
posted to Shareholders	12 February 2021
General Meeting - to be held virtually at 10.00am	05 March 2021
Results of the General Meeting published	09 March 2021
Record Date and distribution of application forms for participation in the Exit
Opportunity	12 March 2021
Opening of Exit Opportunity	15 March 2021
Closing of Exit Opportunity	16 April 2021
Latest date for settlement of the Cash Consideration pursuant to participation in
the Exit Opportunity	21 April 2021

Posting of new share certificates in respect of Shares following the Termination

of listing of Shares on the BSE and closure of the Exit Opportunity Expected date of Termination of listing of Shares on the BSE, on or about

21 April 2021 21 April 2021

Notes

All times within this notice are Botswana times. All or any of the above important dates and times are subject to change as may be required. Any material changes made will be communicated by the Company to Shareholders through X-News

CORPORATE INFORMATION AND ADVISORS

Directors
Lesang Magang (Independent Chairman) Lipalesa Gwyenneth Makepe (Independent) Leutlwetse M Tumelo (Executive) Rupert James McCammon (Executive)
Company Secretary	Place and date of incorporation
Desert Secretarial Services (Pty) Ltd Deloitte House, Plot 64518 Fairgrounds Office Park, Gaborone, Botswana P O Box 133 AEH, Gaborone, Botswana	Incorporated in the Republic of Botswana Registration number BW00001543844 Incorporated on 04 May 2014
Independent Expert	Auditors
BDO Wealth (Pty) Ltd BDO House, 28 Kgale Mews, Gaborone International Finance Park, Gaborone, Botswana P O Box 1839, Gaborone, Botswana	Grant Thornton Acumen Park, Plot 50370, Fairgrounds, Gaborone, Botswana P O Box 1157, Gaborone, Botswana
Sponsoring Broker	Legal Advisor
Imara Capital Securities (Pty) Limited Unit 1E, Ground Floor Peelo Place, Plot 54366 Western Commercial Rd, New CBD, Gaborone, Botswana Private Bag 173, Gaborone, Botswana Tel: [phone] Email:[e-mail]	Desai Law Group 3rd Floor, North Wing, Central Square, Central Business District (CBD), Gaborone, Botswana P O Box 640, Gaborone, Botswana
Nominated Transfer Secretaries and Transaction Advisor
Transaction Management Services (Proprietary) Limited t/a Corpserve Botswana Unit 206, 2nd Floor Plot 64516 Fairgrounds, Gaborone, Botswana PO Box 1583 AAD, Gaborone, Botswana Tel: [phone] Email:[e-mail]

CONTENTS

SALIENT DATES AND TIMES ........................................................................................................................... 2

CORPORATE INFORMATION AND ADVISORS .............................................................................................. 2

DEFINITIONS AND INTERPRETATIONS ......................................................................................................... 4

1 INTRODUCTION ........................................................................................................................................ 6

2 DELISTING ................................................................................................................................................. 6

2.1 Background ......................................................................................................................................... 6

2.2 Future Prospects ................................................................................................................................ 6

2.3 Process ............................................................................................................................................... 7

3 EXIT OPPORTUNITY ................................................................................................................................. 8

• 3.1 Introduction ......................................................................................................................................... 8

• 3.2 Determination of the Cash Consideration ........................................................................................... 8

• 3.3 Payment of the Cash Consideration ................................................................................................... 8

• 3.4 Tax implications for Shareholders ...................................................................................................... 8

• 3.5 Process ............................................................................................................................................... 8

• 3.6 Confirmation of financial resources .................................................................................................... 9

4 HISTORICAL FINANCIAL INFORMATION ................................................................................................ 9

• 5 SHARE CAPITAL AND SHAREHOLDINGS ............................................................................................... 9

• 5.1 Significant Shareholders ..................................................................................................................... 9

  • 5.2 Public Shareholding Analysis ........................................................................................................... 10

  • 5.3 Post Delisting Shareholding Analysis ............................................................................................... 10

• 6 UNDERTAKINGS AND ARRANGEMENTS ............................................................................................. 10

• 7 INDEPENDENT BOARD OPINION, RECOMMENDATION AND RESPONSIBILITY STATEMENT ...... 10

• 8 STATEMENTS BY THE BOARD .............................................................................................................. 11

• 9 CONSENTS .............................................................................................................................................. 11

• 10 GOVERNING LAW ................................................................................................................................... 11

• 11 DOCUMENTS AVAILABLE FOR INSPECTION ...................................................................................... 12

ANNEXURE 1 - ANALYSIS OF TRADING IN AFINITAS SHARES ................................................................ 13

ANNEXURE 2 - REPORT OF THE INDEPENDENT EXPERT ....................................................................... 14

NOTICE OF GENERAL MEETING .................................................................................................................. 20

FORM OF PROXY ............................................................................................................................................ 22

DEFINITIONS AND INTERPRETATIONS

In this Circular, unless otherwise stated or the context clearly indicates a contrary intention, the following words and expressions shall bear the meaning assigned to them hereunder:

"Afinitas Group"	Afinitas and its subsidiaries; and
"Afinitas" or "the	Afinitas Limited, with registration number BW00001543844, a limited
Company"	liability public company duly incorporated in accordance with the laws of
Botswana;
"Bank Account"	for each Shareholder entitled to payment of a Cash Consideration, the
bank account on record with the CSDB for Shareholders;
"BDO"	BDO Wealth (Pty) Ltd, a private company incorporated in Botswana with
registration number BW00000099371, a BSE Registered Corporate
Finance Advisor;
"Board"	board of directors of Afinitas;
"Botswana"	the Republic of Botswana;
"BSE Listings	the equity listings requirements issued by the BSE;
Requirements"
"BSE"	Botswana Stock Exchange Limited;
"BWP" or "P"	Botswana Pula, the lawful currency of Botswana;
"BWP Equivalent"	with respect to any amount in USD, the amount of Pula actually realised
by Afinitas in converting the applicable USD amount into Pula;
"Cash Consideration"	in respect of the Shares to be divested of by a Public Shareholder
pursuant to the Exit Opportunity, the BWP Equivalent of the amount
determined by multiplying the number of Shares to be divested of, by the
Share Price. It should be noted that as settlement will take place through
the BSE's trading platform, as required by the BSE, the Cash
Consideration due to Shareholders will be subject to the deduction of BSE
and CSDB charges and their own stockbroker's commission;
"Circular"	this document, dated 12 February 2021;
"Companies Act"	the Botswana Companies Act, [CAP 42:01];
"CSDB"	the Central Securities Depository of Botswana Limited, the central
securities depository of the BSE;
"Delisting Date"	the date on which the BSE effects the Delisting, expected to be on or
around insert 21 April 2021;
"Delisting Resolution"	the special resolution to be proposed by the Board at the General Meeting
to approve the delisting of the Shares from the Venture Capital Board of
the BSE in accordance with the requirements of section 14.1 of the BSE
Listings Requirements;
"Delisting"	the termination of the listing of all of the Shares from the Venture Capital
Board of the BSE, subject to the passing of the Delisting Resolution;
"Directors"	directors of Afinitas, as disclosed in this Circular in the section titled
Corporate Information;
"Exit Opportunity"	the arrangement whereby the Company will repurchase the Shares of any
Public Shareholder that does not wish to be a Shareholder post the
Delisting, at the Cash Consideration;
"Exit Opportunity	the special resolution to be proposed by the Board at the General Meeting
Resolution"	to approve the Exit Opportunity;