Obtala Limited Trade Finance Update (5925A)
02 January 2018 - 6:00PM
UK Regulatory
TIDMOBT
RNS Number : 5925A
Obtala Limited
02 January 2018
02 January 2018
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Trade Finance Update
Obtala Limited (AIM: OBT), the African focused agricultural and
forestry company, is pleased to announce the initial funding of
Obtala (Hong Kong) Limited (a wholly subsidiary of the Company) the
proceeds of which will be used to finance the Group's timber
trading activities. These funds are complementary to and not a
replacement for any external trade finance facility, the size and
terms of which will be announced once finalized following the
completion of legal documentation.
An initial $1m has been funded in the form of a 10-year loan to
Obtala (Hong Kong) Limited. The loan bears interest at 11.5% per
annum payable annually in arrears. Funds can be used for financing
receivables, inventory and supplier pre-financing and will be put
to work immediately whilst external trade finance is being
finalised. The Group aims to grow this facility to support the
utilization of external trade finance.
Certain Directors of the Company have agreed to invest the
following principal amounts:
Chief Executive
Paul Dolan Officer $250,000
Martin Collins Deputy Chairman $250,000
Director, Argento
Tom Holroyd Ltd $250,000
Director, Obtala
Jessica Camus Ltd $200,000
Chief Strategy
Adam Barker Officer $50,000
Paul Dolan, Obtala CEO, commented: "Since the completion of the
WoodBois acquisition we have conducted in-depth analysis in order
to understand where the true competitive advantage and highest
margin opportunities are, in sourcing and trading African timber.
We are close to the completion of due diligence with an external
trade finance provider that can best support our working capital
requirements, not only for timber trading but also from the
increased levels of production we are expecting in both Gabon and
Mozambique in 2018. This combination of internal and external trade
finance will allow us to optimize profitability while growing the
timber trading division during 2018."
The facility is classified as a related party transaction under
the AIM Rules. The independent directors, being Miles Pelham,
Carnel Geddes and Kevin Milne, having consulted Northland Capital
Partners as Nominated Adviser, consider that the terms are fair and
reasonable insofar as shareholders are concerned.
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
Martin Collins - Deputy Chairman
www.obtala.com +44 (0)20 7099 1940
Northland Capital Partners Ltd (Nomad and Joint Broker)
Tom Price
David Hignell +44 (0)20 3861 6625
Brandon Hill Capital (Joint Broker)
Jonathan Evans +44 (0)20 3463 5000
Beaufort Securities Limited (Joint Broker)
Jon Belliss +44 (0)20 7382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
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