Feronia Inc. Announces $8 Million Short-Term Loan Facility
March 15 2019 - 5:06PM
Feronia Inc. (“Feronia” or the “Company”) (TSXV: FRN) is pleased to
announce that it has entered into a loan facility for up to $8
million. All amounts in this press release are expressed in US
dollars unless otherwise indicated.
The unsecured subordinated short term facility
bears interest at a rate of 12% per annum and has been provided by
CDC Group plc, the UK Government’s development finance institution,
KN Agri LLC, the agricultural and food investment vehicle owned by
funds that are managed by Kuramo Capital Management, LLC and Nile
Capital Management, LLC, and Golden Oil Holdings Limited, a wholly
owned subsidiary of the African Agriculture Fund, L.L.C. The
facility matures on May 31, 2019, subject to acceleration in
certain circumstances.
Funds advanced under the facility will be used
for working capital and other general corporate purposes whilst the
Company seeks to strengthen its financial position. This new
facility is in addition to the $3 million facility previously
announced by the Company on January 8, 2019.
To date, the Company has received advances under
the new facility totaling $6.5 million.
The execution of the facility constitutes a
related party transaction under Multilateral Instrument 61-101
Protection of Minority Security Holders in Special Transactions
(“MI 61-101”). The Company has relied on valuation and minority
approval exemptions set forth in MI 61-101.
For further information please
contact:
Xavier de CarniereChief
Executive Officer, Feronia Inc.44 (0)7468 697
658xavier.decarniere@feronia.comwww.feronia.com |
Paul DulieuDirector of
Communications and Corporate Development, Feronia Inc.44 (0)7554
521421 paul.dulieu@feronia.comwww.feronia.com |
About Feronia Inc.
- Feronia is an agribusiness operating in the Democratic Republic
of the Congo (DRC).
- At the heart of Feronia lies a long established palm oil
business, Plantations et Huileries du Congo (PHC), which has three
remotely located plantations; Lokutu, Yaligimba and Boteka.
- When Feronia acquired its palm oil business from Unilever in
2009, it had suffered from years of underinvestment and
considerable disruption caused by conflict in the DRC. Our initial
focus has been on rebuilding the business and resuming production
to secure its future and the livelihoods of the thousands of people
we directly employ.
- Feronia’s plantations produce crude palm oil (CPO) and palm
kernel oil (PKO). CPO is part of the staple and traditional diet of
the Congolese and, with our products sold locally in the DRC, we
are well placed to help decrease reliance on imports and increase
food security and quality.
- Feronia prides itself on being the guardian of our 108 year-old
palm oil business and its employees, communities, and environment.
We have a long term commitment to improve the living and working
environment of our employees and their communities and are
committed to sustainable agriculture, environmental protection and
community inclusion. Feronia has in place an Environmental and
Social Action Plan which is focused on implementing environmental
and social best practice and improving social infrastructure.
- Feronia is implementing IFC/World Bank standards for
environmental and social sustainability. Our oil palm replanting
programme is brownfield in nature – replacing old palms with new –
and it has no reliance on deforestation.
- Feronia’s management team has extensive experience in managing
both plantations and farming operations in emerging markets.
- For more information please see www.feronia.com
Cautionary Notes
Except for statements of historical fact
contained herein, the information in this press release constitutes
“forward-looking information” within the meaning of Canadian
securities law. Such forward-looking information may be identified
by words such as “anticipates”, “plans”, “proposes”, “estimates”,
“intends”, “expects”, “believes”, “may” and “will”. There can be no
assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such
statements. Factors that could cause actual results to differ
materially include, among others: risks related to foreign
operations (including various political, economic and other risks
and uncertainties), the interpretation and implementation of the
“Loi Portant Principes Fondamentaux Relatifs A L’Agriculture”,
termination or non-renewal of concession rights or expropriation of
property rights, political instability and bureaucracy, limited
operating history, lack of profitability, lack of infrastructure in
the DRC, high inflation rates, limited availability of debt
financing in the DRC, fluctuations in currency exchange rates,
competition from other businesses, reliance on various factors
(including local labour, importation of machinery and other key
items and business relationships), the Company’s reliance on two
major customers, lower productivity at the Company’s plantations,
risks related to the agricultural industry (including adverse
weather conditions, shifting weather patterns, and crop failure due
to infestations), a shift in commodity trends and demands,
vulnerability to fluctuations in the world market, the lack of
availability of qualified management personnel and stock market
volatility. Details of the risk factors relating to Feronia and its
business are discussed under the heading “Risks and Uncertainties”
in Feronia’s Management’s Discussion and Analysis for the year
ended December 31, 2017, a copy of which is available on the
Company’s SEDAR profile at www.sedar.com. Most of these factors are
outside the control of the Company. Investors are cautioned not to
put undue reliance on forward-looking information. Except as
otherwise required by applicable securities statutes or regulation,
the Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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