Johannesburg – June 27, 2018 – Ecsponent Limited is pleased to announce further transactions within its Equity Holdings portfolio, executing on its strategy of investing in assets that will provide the Group with medium to long-term capital growth.
Ecsponent has acquired 16 666 667 shares, at 60 cents per share, in Go Life International Limited, from Go Life Healthcare Limited, a wholly-owned subsidiary of Go Life International (listed primarily on the Stock Exchange of Mauritius and the JSE’s AltX) in a share swap transaction. The total value of the transaction is R10 million and the effective date is 30 June 2018.
Go Life Healthcare will be acquiring Ecsponent’s 50% shareholding in Cryo-Save South Africa and Salveo Swiss Technologies South Africa – both leading stem cell banks in South Africa.
Go Life is a dynamic group, operating in the healthcare sector with an aggressive acquisition strategy for expansion in focused, niche businesses. The Group is already established in the frail care, nutraceutical and cosmeceutical industry. The transaction is a strategic fit for Ecsponent’s stated objective to bolster medium- and long-term growth. The strategy involves positioning the Group for investment opportunities, increasing equity holding in high-potential assets and continuing to create an efficient and professional management structure for the group’s equity investments.
Yesterday, Go Life International reported an audited net profit after tax of US$575 445 for the twelve months ended 28 February 2018, revenue of US$1 819 213, total assets of US$38 250 816 and net assets of US$34 478 762. The Group showed significant growth in each of these indicators and it is reported that their expansion strategies are gaining momentum.
This transaction further supports Ecsponent’s strategic vision and consolidates the Group’s exposure to the healthcare sector, providing attractive prospects in a rapidly expanding market.
Ecsponent Limited CEO, Terence Gregory says: “We see great demand in the healthcare sector, where globally costs are outpacing economic growth in developed countries. Individuals and governments are struggling to afford healthcare costs which have risen to unstainable levels. As a result, alternative medicine and nutraceuticals have become significant health alternatives.”
He adds, “This transaction follows the company’s commitment to source specialists in niche business areas, which are outside the group’s core financial services expertise and investing in minority stakes in these businesses. Target companies, like Go Life, are well-managed, self-sufficient and provide a balance in the Group’s short-term and long-term asset base.”
We are also confident of the synergies between the two stem cell businesses and Go Life. The management team is ideal to give Cryo-Save and Salveo the support needed to continue to maintain and grow their leadership positions in the local stem cell industry.
Go Life’s nutraceutical products are founded on patented technologies, products, ingredients and proprietary formulas based on a combination of selected vitamins, co-factors and minerals, as well as specific natural ingredients.
Go Life group founder Gerhard Naudè says, “We are seeing great demand for natural African treatments globally, particularly from the European market. We have established marketing routes and functional distribution networks adapted to each market in South Africa, Europe and the US. We look forward to incorporating stem cell banking in our product offering across multiple markets.”
At the time of issue, Go Life was trading at 70 cents and Ecsponent at 69 cents per share.
About the Go Life group
Go Life International is a multi-faceted healthcare company offering a comprehensive all-inclusive product range; addressing market needs from pharmaceutical, generic, nutraceutical, medical consumables through to high-end sophisticated hospital equipment.
Go life caters for the informal market as well as the middle to upper expenditure segment of the formal market. The Go Life ranges of products are manufactured in an established Medicines Control Council registered production facility in South Africa. Go Life boasts an established infrastructure managed by an experienced team with international expertise in areas such as the development of digital enablement platforms, research and development, international distribution and innovative marketing strategies.