- Purple Group director, Bonang Mohale, sells nil paid letters in compliance with rights offer
- Transactions involve a total of 984,308 nil paid letters
- Mohale’s sales suggest potential portfolio realignment and impact on Purple Group and Serialong Financial Investments
Purple Group Limited announced that one of its directors, Bonang Mohale, has recently conducted on-market sales of nil paid letters. The transactions were carried out in accordance with the company’s ongoing rights offer. The details of the transactions were disclosed to comply with the Listings Requirements of the JSE Limited.
Bonang Mohale, who is also a director and an 18.1% shareholder in Serialong Financial Investments (Pty) Limited, was involved in the sale of nil paid letters, as outlined in the announcement.
On 31 May 2023, Mohale sold a total of 69,183 nil paid letters at an average price of 26.23 cents. The highest price per nil paid letter reached 28 cents, while the lowest price recorded was 25 cents. The total value of this transaction amounted to R18,147.75.
In a separate transaction on 2 June 2023, Mohale sold a significant volume of 915,125 nil paid letters. The volume-weighted average price per nil paid letter was 18.20 cents, with the highest price at 19 cents and the lowest at 18 cents. The transaction’s total value amounted to R166,578.10.
Both transactions involved indirect beneficial interests and were classified as sales of nil paid letters, a type of security associated with rights offerings.
Purple Group Limited ensured compliance with the necessary disclosure requirements by providing this information to the public. The company appointed CTSE Registry Services Proprietary Limited as its company secretary, and Deloitte & Touche Sponsor Services Proprietary Limited acted as the sponsor overseeing the compliance process.
Nil paid letters are typically issued during rights offerings, enabling existing shareholders to purchase additional shares at a predetermined price. Bonang Mohale’s recent transactions suggest a potential realignment of investment portfolios and may have implications for both Purple Group and Serialong Financial Investments.