Feronia Inc. Announces $5 Million Short-Term Loan Facility
October 28 2019 - 4:11PM
Feronia Inc. (“Feronia” or the “Company”) (TSXV: FRN) is pleased to
announce that it has entered into a loan facility for $5 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 4% per annum and has been provided by
CDC Group plc, the UK Government’s development finance institution.
The facility matures on November 29, 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.
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: |
|
|
Frank Braeken |
Paul Dulieu |
Executive Chairman, Feronia
Inc. |
Director of Communications and
Corporate Development, Feronia Inc. |
+971 5660 30358 |
44 (0)7554 521421 |
frank.braeken@feronia.com |
paul.dulieu@feronia.com |
www.feronia.com |
www.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, 2018, 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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