aaa ( Cp) Gestig - 1960 - Founded Turron & VENNOTE ParTNeRS PROKUREURS - AKTEBESORGERS - BOEDELBEREDDERAARS ~ AFSLAERS ATTORNEYS ~ CONVEYANCERS ~ ADMINISTRATORS OF ESTATES ~ AUCTIONEERS Pesbus (P.O. Box 669 [xpos ars eral rest: aero 23 “Telefon / Telephone: (21) 887 7877 STELLENBOSCH. 7599 aces 33, STELLENBOSCH, Telefaks/Tslefn. (021) 8873333 Alexander It Gsbou, Alxandestax 18 STELLENBOSCH 7600 ‘nlesaner I Baing. 18 Aleserder Sect STELLUNBOSCH 7600 Our Ref.: JB THERON/mv/H080327 Your Ref.: ORTHOTOUCH / L&D 20 August 2015 THE RECEIVER: ORTHOTOUCH LTD GALLO MANOR JOHANNESBURG PER EMAIL: admin@orthotouch.co.za PER FACSIMILE: (011) 262 2656 Dear Sirs Re: ORTHOTOUCH LTD / LIQUIDATION AND DISTRIBUTION ACCOUNT CASE NUMBERS: 42334/2014 & 28101/2015, GAUTENG LOCAL DIVISION, JOHANNESBURG LETTER & NOTICE TO INVESTORS: 19 AUGUST 2015 ‘We refer to the abovementioned matter and in particular your letter, dated 19 August 2015 as well as the Notice to Investors (the "Notice”). As you are aware we act on behalf of Messrs Jurie Johannes Geldenhuys, Arthur Brady Cochrane, Robert Black and Ms Sharon Ann Viok in this regard, ues Brink Toon ‘Asse by Marina Cecilia Verdocs. VAT Regisatan Nanber 4260168630Kindly be advised that we do not intend to reply to each and every averment made in your aforesaid letter and notice, and our failure to reply thereto should not be construed as an admission of the contents or the correctness thereof. Our clients reserve the right to reply thereto at the appropriate time and forum. It is however evident that you do not, by accusing our firm and the Applicants of Griving the litigation against Orthotouch and others, understand the anguish and anger of more than 10000 prospective claimants in Highveld Syndication Companies 15-22 We now wish to shortly reply thereto as follows AD LETTER DATED 19 AUGUST 2015 1. We are of the respectful view that we are under no obligation, legally or otherwise, to assist you in considering objections to Orthotouch's Liquidation & Distribution Account. In fact, it is arguable that we will be acting contrary to the interest of our clients should we so assist you. We therefore decline your request. 2. We however mention, in passing, that it is in our view inconceivable how an investor, by having money paid into his or her bank account by Orthotouch under the Arrangement, is thereby waiving his or her right to, firstly, institute a class action or, secondly, attempt to set aside the sanctioning of the Arrangement. AD NOTICE TO INVESTORS: 19 AUGUST 2015 3. We are not sure where you received all your information from, but it is not factually correct. 4. You are deemed to be aware that, as “independent” Receiver, you should be primarily concerned with the Liquidation and Distribution Account of Orthotouch Limited and it is telling that you dedicated only two sentences ofyour three page letter under the said heading. It is furthermore telling that, although you did not oppose the court proceedings and were not present at the High Court in Johannesburg, you have devoted a lot of time and energy on an “interpretation” of what happened at court It is moreover interesting to note that you have (conveniently) omitted and/or failed to mention that Orthotouch's legal team was forced to admit that you, as Receiver, have incorrectly calculated the time period during which the Liquidation and Distribution Account was to lay open for inspection. In fact. you have immediately after the court was adjourned, informed the investors via sms / email that the date had been extended with another five days to 11 ‘August 2015. You would remember from the court papers that this was one of the main reasons why the application was brought on an urgent basis. Having the date extended, the Applicants have therefore succeeded in that aspect of their pursuit of justice. Had proper notice been given by you no urgent proceedings would have been necessary. ‘The mere fact that the Honourable Justice Francis did not deem the matter to be urgent, simply means that the court did not have time available to hear the matter on an urgent basis. It does not mean that the court case itself and the reasons therefore would disappear. In particular, the merits of the application were not adjudicated upon and our clients and the Highveld Syndication Action Group are still insisting that you make available the Liquidation and Distribution Account. The Scheme of Arrangement, to which you are bound, stipulates that you, as Receiver, shall draw a Liquidation and Distribution Account as if you were a liquidator under_a_winding-up order or otherwise in your discretion as Receiver, in a manner fitting the purposes of the arrangement, The aforesaid does not mean that you can, simply for your own personal gratification or wishes, decide what must be included (or not) in the said account.10. "1 12, 13, In a liquidation process the Liquidation and Distribution Account would be readily available to all creditors (investors on your version). The creditors must also be afforded a proper opportunity to consider same and lodge objections, if necessary, ‘The whole purpose of the arrangement was surely to administer the property Portfolio of Orthotouch Limited by you in such a manner to benefit the investors/creditors in the Highveld Syndication companies. Despite this, there is no information in the Liquidation and Distribution Account. reflecting any Properties or proceeds from the sale of properties which were to be effected to and from Orthotouch. If you were a liquidator you would undoubtedly have been reprimanded by the Master of the High Court for such failure Another matter of great concem must also be addressed. Could you please explain what the purpose of the entity Orthotouch (Pty) Ltd (a separate private company) under registration number 2010/004096/07 is, as opposed to Orthotouch Ltd (a public company) under registration number 2010/004096/06 (which is exactly the same registration number, save for the last digit). For your convenience, we attach hereto copies of the two CIPC searches, confirming the aforesaid and marked Annexures “A” and “B”. It has recently come to our attention that Orthotouch (Pty) Ltd, which was never mentioned or involved in the Scheme of Arrangement to which you are bound, is in the process of selling some 29 immovable properties, all of which were included in the Scheme of Arrangement document. The notice of such sale, which appeared in the Star of 6 August 2016, however refers to Orthotouch Ltd's registration number, which is also fatally flawed, defective and misleading. Again for your convenience, we attach hereto, marked Annexure “ , a copy of the advertisement which appeared in the press. Could you please clarify the aforesaid immediately, because none of the above is reflected in your Liquidation and Distribution Account and our clients, as well as the other investors, hold you personally liable for any damages and14, 15. 16. 17. 18. 19. losses which they may suffer as a result thereof, The aim of your letter Is clearly not only to attack the people closely involved in protecting the rights of the investors and to misguide the Investors, but also Contains an indirect threat to terminate interest payments. You furthermore insinuate that Orthotouch is “not related” to the Highveld Syndication Companies 15 to 22, despite the fact that Directors of Orthotouch, and in particular Messrs Nic Georgiou (your managing director on your letterhead) and Hans Klopper were intimately involved in the management of the said companies, whether before or after the initiation of Business Rescue Proceedings. Our information is that Mr Connie Myburgh, 2 director of Orthotouch, is undoubtedly the author of your notice and scathing attack on the legal and financial advisors. Certain of the above (and other) individuals now seek to absolve themselves from any liability towards the investors by way of the Scheme of Arrangement document, while (through various trusts and companies) being in possession Of hundreds of millions of Rand worth of properties apparently bought with Investor funds. The current litigation against Orthotouch is anything but “frivolous” and to so label proceedings attempting to claim the loss of millions of Rand of investors hard earned retirement funds, is appalling. The finding by the Honourable Court contains absolutely no indication of frivolity and was necessitated by your conduct, as set out above, and you can be assured that the thousands of investors shall take all possible legal steps to protect their interests. ‘The urgent court application has nothing to do with the monthly interest Payments to investors and your comment to such effect in Paragraph 2.7 of the notice is misleading and misplaced. The interest payments under the Business Rescue Plan were considerably higher and Orthotouch's failure to honour their obligations has resulted in the20, 21. 22, 23, 24, 25, current low interest rate offered to Investors. Your admission that the Highveld investment product is “inappropriate” is significant, given that Mr Nic Georgiou was the main driver of the whole scheme. The fact that the blame for the financial predicament in which the investors now find themselves is being shifted to ‘intermediaries’ and “brokers” is preposterous. It is common knowledge that the investments in Highveld Syndications 1 to 14 were after all not “inappropriate” until Mr Georgiou and others became involved from Highveld Syndications 15-22 Othotouch failed to meet its obligations towards the Highveld Syndication Companies under business rescue and you are the appointed official responsible to account to the Westors what happened to the properties and monies received, which you miserably fail to do. The Receiver should clearly be an impartial and objective party, yet you write under the letterhead of Orthotouch (Pty) Ltd. This notification, and the Previous notification of 29 July 2015, must surely have at least been sent under your own letterhead! In your “Liquidation and Distribution Account” there is absolutely no indication of the so-called “negative effect of the cases on Orthotouch’ or the “drain of its financial resources" and your averment related thereto is rejected with contempt The fact of the matter is that the incurrence of unnecessary costs could have been avoided had Orthotouch, already in April 2045, filed its opposing affidavit timeously in the setting aside application ‘On the one hand, you and Orthotouch refuse to furnish our firm (and the investors) with the particulars of investors for purposes of giving notice of the Proceedings to investors. On the other hand, it also attempts to use such alleged “lack of proper notice" by the Applicants as (technical) grounds for refusal of the relief sought in their application. This is clearly depicting26. 27, Orthotouch's bad faith and evidential of its circular reasoning, 77 Properties were supposed to be transferred to Orthotouch and the simple ‘question is, Mr Receiver, what happened to those properties and the monies generated by it and when (and how) is it going to be paid to the investors? Lastly we wish to remind you of the decision of the Honourable Justice CT Howie, a well-known former Judge of the Appellate Division, in the matter between the Registrar of Financial Services Providers and Pickvest Investments (Pty) Ltd. In the aforementioned decision Justice Howie Concluded that the officers or employees of Pickvest (which was controlled by Mr Georgiou) acted with a dishonest state of mind by paying the Sellers of properties (entities controlled by Mr Georgiou) mentioned in the relevant prospectuses without taking transfer of the said properties. We trust you will find the above in order and await your reply hereto. Yours faithfully THEROM& PARTNERS Per: JBITHERONip " Lunt 85, aan Grove, Monte Gade ORTHOTOUCH iC Company ‘Summary Search Type cic company Search Description ORTHOTOUCH Reference THERON Date ava7i2015 ‘Company Information Summary Name oRTHOTOUCH Type PUBLIC COMPANY (LTD status INBUSINESS Reglctration Number 2ov07n04096%06 Registration Data 2032010 Director Name 10 Number Director Status ‘Appointment Date NICOLAS GEORGIOU -ssnat9st0g086 ACTIVE s5r2R011 PANAGIOTIS KLEOVOULOU 5910075145031 ACTIVE tsir2re011 JOHANNES FREDERICK KLOPPER 5807148020080 ACTIVE oaionz012 CORNELIUS FOURIE MYBURGH ‘5206155133080 ACTIVE osiowzo12 RCI) Director Namo 10 Number Director Status ‘Appointment Date 4SYTE BUSINESS SOLUTIONS 7 RESIGNED orora012 ‘CASPER FRANCOIS DE VILLIERS. ‘408086005087 RESIGNED penor2012 CHRISTIAN GoUWs 5908265147087 RESIGNED oavear2010 CHRISTIAN GOUWS 308285147087 RESIGNED o2/03r2010 JOHANNES JACOBUS NEL 5301055106088 RESIGNED ozoaza10 ADELE UYS 7608300201087 RESIGNED oznaizo10 HEYDENRYGH VAN LOGGERENBERG 6301295041087 RESIGNED enor Pees Director Namo 10 Number Director Status ‘Appointment Date No information avaiable ‘Auditor Name Profession Code Status ‘Start Date BGR BROODRYK KOTZE INCORPORATED RBA CURRENT : GRANT THORNTON ‘SAICA, RESIGN LSG INTEGRATED ‘SAGA RESIGN 7 MKOTZE SAICA ‘CURRENT Page tol 12 29872015 16 4008maw ORTHOTOUCH ae Bae eo a — = ou bone cower : cocete Stow - a SS ee No wiorran availabe Diesctor Namo 1DNumbor Director Status, Appointment Dete No wrmetion avalaie, fi Director Name WDNumber Director Status Appointment Dato | No fermion avataie a a Profession Coce = ra ‘Start Date No mformeion avaiable, Pogo 112 sores wae"4, ‘8629'S NOTICE OF SALEOF RENTAL ENTERPRISES Natce Is hretygiven nee cf ean 9 of fe ecenyAc, 15, et Orth Propiar WEQOLEES.co.za Search [Searentor | aCe | © Fey Regen Browse Categories [5 xezmmcenien 1 | Pacnoces | | Safely Tips (ancowch merayoocs atone | ‘Sysceancronoscan Pawson’ neoroe bneetsotbe bine so ecrine ‘her sear paar en woe paosujocan {see moceybotreuhar cane re seucemmeamene | Suction | | [Seton aa psaueegotads co zaSalos ef Busines sts haps 4NOTICE+OF +SALE+OF+RENTAL “ENTER RISES+Nolceviseheda/1SS076IM The Star CARETIMES Capers BailyNees fooiSZH ‘TeMeRCury PACTORANeWs §SaronnarStar € many more anato Genmeasicis foMe BROWSE EEA avaceoUNT Crore pace yor Mae mend Using Bet ‘cee pn co ad ea at 255 NOTE OF SALE OF RENTAL ENTERPRISES Ne arty gh, eof scan 9 Ine roakey ct. ht Ohloh Pty te geen ron b\GoR a5 Inez a sal andes o Dat Prop Fis mos eget re ‘Ennai be ago ener hfe! hort ty spe stern case tt peso ‘utes estan Sem mc Al Ta re wing enapees canted er he Frets antarbdow ema agence arte senna, to we Me Sposa afin susenin eavehore. 1228 2 Googe Lite Sta leg Et "a2 soenoviaextrlon es, Ott Remiten, ons, ty Geto Tate ‘andor 2.2874 Gots Libs Svetlana EF (97s Eee Ose lors Pre So, dy Ooo eta Save 3 Canes Buoy stl on Eo ‘t Shenae, Gate! osninton Pins Site, hl ty Gast nae wen ‘Dank Bung slutewon EW a2? le, et Wear fop Se. ely Oat “eset 16s 2012, Sot Oy Ey sand nt 323 inontetan, Dale “ls, eo Sit ed Ose fre eae Een Ou Sara asd on En zis9 Gerona! oarssnan Fro Se hey Dens of are aso, Fat ony Bussey totes on £318 Shamita ate emer Sd by ‘eee! ste ewe Sasa ateg stot an Esa Semmes {Sacriodnn re Stl, idly Dees Tora NOHBTEED, ear Sng eee oh Er lat iount-ton, Bet oma, Hae Se, hy Doe ara S700 ‘oStacara bane Nees Sgr aad on S82 Napnt Toware Pegttin Diesen JT. 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