Umthombo Springs Business Plan — Annexure F: Series A & B Term Framework

R30.0 million ordinary equity subscription; R18.0 million asset finance secured on the bottling line

Annexure F: Series A & B Term Framework

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F.1 Series A indicative terms

Term

Indicative position

Issuer

Umthombo Springs (Pty) Ltd

Round size

R48.0 million

Structure

R30.0 million ordinary equity subscription; R18.0 million asset finance secured on the bottling line

Pre-money / post-money

R36.0 million / R66.0 million

Investor equity

45.5%, with a 10% employee option pool created at close

Liquidation preference

1x non-participating

Anti-dilution

Broad-based weighted average

Board

One investor-nominated director; reserved matters schedule

Reserved matters

Further issuance, indebtedness above agreed limits, disposal of the water use licence or lease, material related-party transactions

Information rights

Monthly management accounts and the KPI set in Section 21; quarterly board packs; annual audited statements

Pro-rata rights

Participation rights in Series B

Conditions precedent

Water use licence in good standing; hydrogeological assessment; registered notarial lease; key-person agreements

F.2 Series B framework and milestone gates

Term

Indicative position

Round size

R85.0 million

Timing

Month 24, conditional on the milestones below

Structure

R60.0 million ordinary equity; R25.0 million term debt and asset finance

Pre-money / post-money

R135.0 million / R195.0 million — a 2.05x step-up

Investor equity

30.8%

Board

One further investor-nominated director

Milestone gating Series B

Why it matters

Plant commissioned and SANS-compliant

Removes the commissioning and product-category risk

Domestic listings secured

Demonstrates commercial capability and absorbs fixed cost

FSSC 22000 certification achieved

The precondition for every export market; cannot be accelerated with capital

Export trial shipments completed and repeated

Proves the logistics chain and the distributor relationships end to end