Obtala Limited Subsidiary Preference Share Subscription Update (5513Z)
15 March 2017 - 10:00PM
UK Regulatory
TIDMOBT
RNS Number : 5513Z
Obtala Limited
15 March 2017
15 Mar 2017
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Subsidiary Preference Share Subscription Update
Obtala Limited (AIM: OBT), the African focused agricultural and
forestry company, is pleased to announce that it has raised an
additional $3 million from a further subscription for preference
shares in Argento Limited (Obtala's 75% owned forestry subsidiary)
in accordance with the terms announced on 1(st) December 2016.
Negotiations continue with a major Asian financial institutional
investor but with their internal processes dragging on the Board
decided it was in the best interests of the Company to fulfill
excess demand remaining from the 1(st) December transaction.
Dialogue continues with the institutional investor which could lead
to future partnership however since the Argento Preference share is
almost fully subscribed an investment is not expected in the
near-term.
8,573 additional Argento Preference shares are to be issued at a
price of US$350 per share, bringing the total in issue to 69,000
out of the maximum 75,000 available Preference Shares leaving a
further 6,000 available. There were 6 investors which were a mix of
HNWs and a Commodities Trading House.
Proceeds from the committed US$3.0m are to be received during
the following settlement periods:
On or before:
31(st) March 2017 US$550,000
30(th) June 2017 US$150,000
30(th) September 2017 US$2,300,000
Miles Pelham, Chairman of Obtala, commented "Near completion of
this funding represents a significant step for the company as we
move forward with the monetization of latent assets.
"Management and operational teams have been strengthened and
significant planning has been completed during the rainy season.
Project teams are working through land purchase, lease negotiation
and site surveys in preparation for construction of the new Sawmill
and Packhouse facilities that will change the basis of our
production capabilities by the end of 2017".
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
www.obtala.com +44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
Ray Zimmerman/ Peter Trevelyan-Clark / John Treacy +44 (0)20 7060 2220
Brandon Hill Capital (Broker)
Jonathan Evans +44 (0)20 3463 5000
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Further Information
Terms of the Argento Preference share
Issue Date 1(st) December 2016
Tenor Perpetual
Denomination $350
Preferred Dividend 5%
Ordinary Dividend Yes
Takeover ratchet Yes, 150% upon change of control
Drag along rights Yes
Tag along rights Yes
Convertible period 30(th) August 2017 and perpetually onwards
Conversion property Either of the following, at the choice of
Preference share holder:
a. Into Argento Limited ordinary shares on 1-for-1 basis
b. Into Obtala Limited ordinary shares on a 1-for-1435 basis
Obtala Conversion price 20p (using deal FX rate of 1.22)
Dilution protection Yes
Full conversion of the 8,573 Preference shares now agreed to be
issued into new Obtala ordinary shares would result in the issue of
a further 12,302,255 new Obtala ordinary shares, representing
approximately 4.43 per cent. of Obtala's existing issued ordinary
share capital.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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