Agriterra Ltd Disposal of Sierra Leone Cocoa Assets (9891G)
June 02 2017 - 4:57AM
UK Regulatory
TIDMAGTA
RNS Number : 9891G
Agriterra Ltd
02 June 2017
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
2 June 2017
Agriterra Ltd ('Agriterra' or the 'Company')
Disposal of Sierra Leone Cocoa Assets
Agriterra announces that it has today completed the sale of its
Sierra Leone cocoa assets for a cash consideration of US$500,000
(the "Disposal").
Under the terms of the Disposal, the Company disposed of its
interests in Tropical Farms Limited and Tropical Farms Plantations
(SL) Limited (the local companies which hold the assets comprising
the Company's cocoa business in Sierra Leone, the "Target
Companies") with immediate effect against payment in full. The
Target Companies have been sold in excess of their collective
current book value of approximately US$250,000.
As stated previously, the Company has successfully established
the necessary infrastructure from which a large scale commercial
cocoa plantation and trading business can be developed in Sierra
Leone. The next stage in the development of these assets requires
significant capital investment. Given the impact of Ebola on the
West African region as a whole and the lack of investment appetite
from traditional finance sources, the board have formed the view at
this time, after due investigations and careful consideration, that
the Company is unlikely to be able to raise the finance to continue
with the development of the cocoa plantation in the foreseeable
future. In this context, the board therefore believe that it is in
the best interests of the Company to complete the Disposal to
bolster the Company's cash reserves and to enable the new owners to
develop this Sierra Leonean asset base.
The Disposal is part of the Company's ongoing rationalisation
programme. The proceeds of the Disposal will be applied towards the
Company's general working capital requirements.
Andrew Groves, CEO of Agriterra commented "We are proud of the
investments made and the developments we promoted in Sierra Leone
since 2011. We are also proud to have been one of the only foreign
companies to have retained a presence in the country through the
Ebola crisis, during which period we contributed to the relief
efforts through logistical support. By exiting from our Sierra
Leonean cocoa projects at this time we will reduce ongoing cash
outlay, thereby enabling additional funds to be allocated to our
core activities. At the same time we have retained our prospective
palm oil assets in Sierra Leone."
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0)
20 7408 9200
Daniel Cassiano-Silva Agriterra Ltd Tel: +44 (0)
20 7408 9200
David Foreman Cantor Fitzgerald Tel: +44 (0)
Europe 20 7894 7000
Michael Reynolds Cantor Fitzgerald Tel: +44 (0)
Europe 20 7894 7000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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