Dekel Agri-Vision PLC Acquisition of further interest in cashew project (2364O)
February 08 2021 - 1:00AM
UK Regulatory
TIDMDKL
RNS Number : 2364O
Dekel Agri-Vision PLC
08 February 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Acquisition of a further 16.7% interest in cashew project
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to announce it has entered into an agreement to
acquire an additional 16.7% interest in the large scale raw cashew
nut ('RCN') processing project at Tiebissou, Côte d'Ivoire (the
'Cashew Project'), which will increase its interest in the Project
to 70.7% (the 'Acquisition'). The Cashew Project is on course to
become Dekel's second producing asset in Q2 2021, alongside the
100%-owned palm oil asset at Ayenouan.
Cash and shares settlement at request of vendor to retain
exposure to upside potential
Dekel is increasing its interest in the Cashew Project via the
acquisition of a 16.7% beneficial interest in Pearlside Holdings
Ltd ('Pearlside'), the wholly owned parent of Capro CI SA, the
entity developing the Project, for a total consideration of
GBP1.062m. GBP708,000 of the consideration is to be settled in cash
with the remaining GBP354,000 to be settled via the issue of
7,080,000 new ordinary shares of EUR0.0003367 in the Company (the
'Consideration Shares') at 5p per share. The Consideration Shares,
which represent approximately 1.3% of Dekel's enlarged share
capital, are to be issued to one individual shareholder of
Pearlside and will be subject to a six month lock-in period and an
orderly market undertaking thereafter.
The settlement of the Acquisition via cash and the issue of the
Consideration Shares follows a request by the vendor for the
consideration to include an equity element in order to retain
exposure to the Cashew Project and to gain exposure to Dekel's
wider portfolio and strategy to build a multi-commodity agriculture
company. The cash element of the Consideration will be funded by
the proceeds of the Company's recent fundraise (see announcement of
29 January 2021 for further details).
Cashew Project on track to become Dekel's second producing asset
in Q2 2021
Under a phased development programme, the plant at Tiebissou
will commence production at an initial RCN processing capacity of
10,000 tonnes per annum. Within 12-24 months, production at the
plant is expected to increase by 50% to 15,000tpa at no extra
capital outlay by increasing the number of shifts of employees from
two to three per day. From this level, it is envisaged cash flows
generated by the plant will largely fund a doubling in capacity to
30,000tpa. The Directors believe the Cashew Project, which will
capitalise on a shortfall in cashew processing capacity in Côte
d'Ivoire, one of the world's largest cashew growers, will be cash
flow generative at the initial processing rate of 10,000 tonnes per
annum.
Dekel Agri-Vision Plc Executive Director Lincoln Moore said:
"With the commencement of cashew processing operations at Tiebissou
in Q2 2021 rapidly approaching, we believe this is the right time
to increase our interest in what promises to be a strong margin
project that will scale up and diversify our revenues and transform
our financial profile. It is also the right deal for both Dekel and
the vendor whose request it was to receive shares in the Company as
part payment for the Acquisition. In our view, this represents an
endorsement not only of the attractive economics of the Cashew
Project, but also of Dekel's wider portfolio and growth plans.
"Our portfolio includes the established palm oil operations at
Ayenouan, which are well placed to benefit from high global crude
palm oil prices during the current peak harvest season in Cote
d'Ivoire. Our additional growth plans include adding a third
commodity to our portfolio. At this point, as we have previously
disclosed, having three projects will provide us with a highly cash
flow generative platfom. We now believe we have a clear line of
sight towards building a multi-project, multi-commodity agriculture
company, which has the potential to generate significant returns
for investors and significant benefits for the local smallholders
with whom we work closely with. I look forward to providing further
updates on our progress."
Admission to trading on AIM
Application will be made to the London Stock Exchange for the
admission of a total of 7,080,000 new Ordinary Shares to be
admitted to trading on AIM ('Admission'). It is expected that
Admission will occur on or around 12 February 2021.
Total voting rights
Following Admission, the total issued share capital of the
Company will be 535,527,705 Ordinary Shares. The Company has no
Ordinary Shares in treasury. Therefore the total number of voting
rights in the Company is 535,527,705 and this figure should be used
by shareholders of the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
** ENDS **
For further information please visit the Company's website
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman
Megan Dennison +44 (0) 207 236 1177
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agriculture company focused on West Africa. It has a portfolio of
projects in Côte d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 60,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in Q2 2021.
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