Freddy Lekau Sehoana has inspired thousands of South Africans with his story of poverty to wealth. He has opened a number of stores in South Africa and even collaborates with prominent celebrities, but he apparently ran into some issues. A local businessman claims 34% of the sneaker brand over a broken loan agreement.
Freddy Lekau Sehoana was sued by Pretoria investor Alfred Mashiya, who claims 34% of the company after investing R45,700 in the company in 2019.
According to reports, the two men met at Menlyn Mall in Pretoria and entered into a loan “investment contract” of Rand 45,700 to pay for 200 pairs of sneakers already made and ready to be sold.
The money was to be repaid with interest of R18,000 by December 2019 and Sehoana was also to pay Mashiya R100 for each pair of the first 5,000 sneakers sold.
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Sunday World reports that Sehoana agreed to give Mashiya 5% of the company’s stock in the event of a 24-hour late payment, and then an additional 1% for each day of late payment. According to Mashiya, he was not paid the R100 of the 5,000 sneakers and is now entitled to shares in the company.
“In light of the breach and in accordance with the contract, I am entitled to 34% of the company Drip Footwear calculated from August 1, 2020, i.e. the date of the breach until the day of the fourth day of September 2020, being the date I asked my lawyer to execute a letter of formal notice for the second respondent to issue the requested company shares on my behalf, the request to which the second responded ignored . “
Sehoana shares her answer
Sehoana confirmed that he received the papers and borrowed the money from Mashiya. However, he claims he repaid the loan and interest of R18,000 by December 31, 2019 but was unable to give Mashiya R100 for the first 5,000 sales due to Covid-19 and unforeseen expenses. .
Also according to Sehoana, he and Mashiya agreed on different contract terms and agreed to him by paying R200,000 to Mashiya in July 2020 and R300,000 in November 2020.
Sehoana said he only paid 100,000 Rand at that time because shoe sales did not generate 500,000 Rand, but made full payment after receiving a letter of formal notice from the Mashiya’s lawyers.
Despite the unpaid payment, Mashiya still demands 34% of the company, Sehoana says.
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