Feronia Inc. Announces Intention to Refinance ESG Loan Facility
June 19 2018 - 10:04AM
Feronia Inc. (“Feronia” or the “Company”) (TSX-V:FRN) today
announced its intention to refinance its existing ESG loan facility
(the “ESG Loan”). The ESG Loan was first provided to the Company in
November 2013 by CDC Group PLC (“CDC”), as lender, to support the
implementation of an environmental and social action plan designed
to strengthen the Company’s environmental and social standards and
to enhance community facilities.
The Company intends to enter into a new loan
facility with CDC in the principal amount of up to US$5.4 million
(the “New Loan Facility”) which bears interest at 12% per annum and
is convertible into common shares in the capital of the Corporation
(“Common Shares”) at a conversion price of $0.275 per Common Share.
The proceeds from the New Loan Facility will be used to repay all
obligations of the Company under the existing ESG Loan. The Common
Shares issuable upon the conversion of the New Loan Facility will
be subject to a statutory four month and a day hold period from the
date of the New Loan Facility in accordance with applicable
securities legislation. The execution of the New Loan Facility and
the issuance of the underlying Common Shares are subject to the
approval of the TSX Venture Exchange.
The execution of the New Loan Facility will
constitute a related party transaction under Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions (“MI 61-101”). The Corporation is relying 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.com |
Paul DulieuDirector of
Communications and Corporate Development, Feronia Inc.44 (0)7554
521421 paul.dulieu@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 107 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 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.
- 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
and arable farming operations, 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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