BridgeFort Capital, previously known as Medtech Holdings, is planning to transition its Class A and Class B listings to the Victoria Falls Stock Exchange (VFEX) through an introductory listing. The company, currently listed on the Zimbabwe Stock Exchange (ZSE), categorizes its operations into Class A and Class B portfolios.
The Class A portfolio mainly comprises consumer goods, including a 50.1% stake in Zvemvura Trading (trading as MedTech Distribution) and a 51% stake in Chicago Cosmetics, a subsidiary of MedTech Distribution. The Class B portfolio consists solely of cash and bank balances totaling US$120,000.
In a communication to shareholders, BridgeFort announced that its board has approved the move to VFEX, pending necessary shareholder and regulatory approvals. The transition aims to enhance access to capital inflows into Zimbabwe, broaden the investor base, and facilitate financial reporting in US dollars, thereby reducing foreign exchange risk for shareholders.
VFEX, a US dollar-denominated exchange, has been gaining traction since its launch in October 2020, attracting listings across various sectors, including mining, financial services, and tourism.
The planned VFEX listing will be accompanied by the issuance of 83,440,639 Class A preferred shares to Diaspora Kapita shareholders and other parties owed money by Diaspora Kapita and its affiliates. Post-allotment, BridgeFort will own 100% of Diaspora Kapita, which will control significant stakes in other investments.
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Additionally, 2,486,599 Class A preferred shares will be issued to holders of claims against AgroStrong, enabling BridgeFort to secure a 99.94% ownership stake in AgroStrong after converting these claims into equity.
The proposal includes issuing 84,615,385 Class A preferred shares to a placement agent to raise capital for the Class A portfolio as needed. Current key shareholders of Diaspora Kapita are also set to subscribe for 85,000 ordinary shares, contributing a total of US$850,000.
Diaspora Kapita, founded in 2014 in South Africa, focuses on providing investment opportunities and services for Zimbabweans in the diaspora, including comprehensive funeral services.
The VFEX listing and associated transactions are contingent on approvals from the Reserve Bank of Zimbabwe, the South African Reserve Bank, and the VFEX listings committee.
BridgeFort’s Class A portfolio mainly distributes consumer goods produced by Amka Products and Chicago Cosmetics, which include popular personal care brands. The company has faced challenges due to local currency devaluation and increased competition from the informal sector, leading to reduced sales volumes.
