LONDON, Aug. 22, 2011 /PRNewswire/ -- Farm Lands of
Guinea, Inc. (the "Company" or
"FLGI" ticker symbol) which controls a quarter of a million acres
of underutilized West African agricultural land, has closed a
$1,000,000 strategic investment from
AIM Investments PLC ("AIMI") through a private placement. Based in
the UK, AIMI is a frontier and emerging market investment company
quoted on the London Stock Exchange's Alternative Investment Market
(Symbol: AIM.L). "We welcome AIMI's strategic investment in
FLGI," said Mark Keegan, CEO of Farm
Lands of Guinea. "The
principals of AIMI and their major shareholder Desmond Holdings
Ltd. bring experience in South American frontier market agriculture
investing, and will be a catalyst in realizing value from FLGI's
West African assets," he concluded.
"AIMI's investment in Farm Lands of Guinea Inc. gives the
company and its shareholders exposure to the exciting growth
prospects presented by this large-scale agricultural opportunity in
West Africa," said Mark Pajak, Acting Chairman of AIM Investments.
"FLGI has negotiated extremely generous leases and options on
significant parcels of fertile land, which will be suitable for
growing maize, rice and soya after preparation. We have strong
belief in the management team, who have demonstrated their
abilities very successfully on similar projects in South America," Mr. Pajak stated recently to
the London Stock Exchange's Regulatory News Service.
California-based Hunter Wise
Securities, LLC served as the sole placement agent to FLGI for the
investment transaction, pursuant to which AIMI purchased for an
aggregate of $1,000,000 a total of
50,000 Units with each Unit comprised of four (4) shares of Common
Stock, Series A Warrant to purchase one (1) share of Common Stock
at an exercise price of $7.50 per
share and Series B Warrant (together with Series A Warrant, the
"Warrants") to purchase one (1) share of Common Stock at an
exercise price of $10.00 per
share.
Contemporaneous with AIMI's investment in the Company, FLGI
subscribed for 24,500,000 new ordinary shares of 0.1 pence (British Pound Sterling) in the capital
of the AIM Investments, at a subscription price equal to AIMI's
current Net Asset Value of 1.25 pence
per share. FLGI also received 24,500,000 warrants exercisable at
1.5 pence per share. As a result of
the subscription, FLGI holds an interest in 8.8% of the issued
share capital of AIM Investments.
FLGI through its 90%-owned subsidiary, Land & Resources
(Guinea) SA ("Land &
Resources") is a development- stage agricultural company in the
Republic of Guinea ("Guinea"). It intends to engage in
acquiring and consolidating farm land and operations in
Guinea and rehabilitating them
back into production using modern agricultural techniques and
practices. Land & Resources currently plans to develop
8,815 hectares in the villages of N'Dema and Konindou to grow maize
and soybeans in rotation as a pilot scheme for the development of
98,400 hectares lying to the south and east of Saraya.
Pursuant to the Contract for a Program of Agricultural
Development in Guinea dated
September 16, 2010, the Ministry of
Agriculture of Guinea ("MAG")
agreed to grant to Land & Resources 99-year leases over two
parcels of land in the villages of N'Dema and Konindou of 5,340 and
3,475 hectares respectively to be developed as agricultural
land.
On the same date, Land & Resources and MAG entered into an
Option Agreement pursuant to which Land & Resources was granted
an option to assume a lease of approximately 98,400 hectares
(243,151 acres) located in the village of Saraya in Guinea.
On October 25, 2010 Land &
Resources signed a Protocol d'Accord with MAG under which the
Company undertook obligations to survey and map additional
underutilized land in Guinea
estimated to be up to 1.5 million hectares (3.7 million acres) of
combined area and prepare it for third party development under
99-year leases.
FLGI proposes to develop the leased land to grow in rotation,
maize and soybeans. Given the rainfall, the temperature
profile and the nature of the soil, it is anticipated that the land
when developed will produce about 4 tons of soybeans per hectare.
The rotation will be one year of maize followed by two years
of Soya. FLGI's program represents a major breakthrough for
the democratically-elected government of the Republic of
Guinea in their priority plans for
food self-sufficiency. The completion of FLGI's agricultural
activities will result in a multi-million dollar inward investment
into the Republic of Guinea.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward looking statements are based
upon the current plans, estimates and projections of Resource
Acquisition's management and are subject to risks and
uncertainties, which could cause actual results to differ from the
forward looking statements.
Such statements include, among others, those concerning market
and industry segment growth and demand and acceptance of new and
existing products; any projections of sales, earnings, revenue,
margins or other financial items; any statements of the plans,
strategies and objectives of management for future operations; any
statements regarding future economic conditions or performance;
uncertainties related to conducting business in Guinea, as well as all assumptions,
expectations, predictions, intentions or beliefs about future
events.
Therefore, you should not place undue reliance on these
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: business conditions in Guinea, general economic conditions;
geopolitical events and regulatory changes, availability of
capital, the Company's ability to maintain its competitive position
and dependence on key management.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale of any securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of such jurisdiction.
CONTACTS:
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Michael Barton, CFO
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Dan McClory, Managing
Director
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Farm Lands of Guinea,
Inc.
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Hunter Wise Financial Group,
LLC
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+44 1257 480597
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+1 949 732 4102
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http://www.farmlandsofguinea.com
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dmcclory@hunterwise.com
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SOURCE Farm Lands of Guinea,
Inc.