Feronia Inc. Announces Court Approval of Restructuring Transaction
Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) announces
that it has obtained an Order of the Supreme Court of British
Columbia in Bankruptcy and Insolvency approving the third party
sale and restructuring transaction previously announced by the
The transaction is to be completed pursuant to
the terms of a definitive purchase agreement with Straight KKM 2
Limited (“KKM”), which provides for the acquisition of
substantially all of the Company’s assets, including its direct and
indirect equity interests in its operating subsidiary, Plantations
et Huileries du Congo (“PHC”).
The key terms of the transaction are set forth
in the press release of the Company issued on July 20, 2020.
The transaction is expected to close before October 6, 2020,
subject to the completion of certain conditions precedent.
As Feronia will not meet the continued listing
requirements of the TSX Venture Exchange (the "TSXV") upon
completion of the transaction, Feronia intends to have its common
shares voluntarily delisted from the TSXV and will apply to
Canadian securities regulators to cease to be a reporting issuer
For further information please
|Larry SerumaExecutive Chairman,
||Paul DulieuDirector of
Communications and Corporate Development, Feronia Inc.44 (0)7554
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, 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 PHC’s future and the livelihoods of the thousands of
people it employs.
- 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 its 109 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 Environmental and Social
Management which is focused on implementing environmental and
social best practice and improving social infrastructure.
- Feronia is working towards certification by the Roundtable for
Sustainable Palm Oil (RSPO) and 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.
- For more information please see www.feronia.com
Cautionary NotesExcept 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, 2019, 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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