TIDMPAL
RNS Number : 2230H
Equatorial Palm Oil plc
09 July 2012
9 July 2012
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Director's Dealing: Share Swap Agreement with Praetorian
Resources
Equatorial Palm Oil plc, (AIM: PAL), the AIM listed palm oil
development company with operations in Liberia, announces that one
of the Company's shareholders Adelise Services Limited, in which
the EPO Chairman Michael Frayne has a beneficial interest, has
today entered into a share exchange agreement (the "Exchange
Agreement") with prospective AIM-quoted Praetorian Resources
Limited ("Praetorian").
Under the terms of the Exchange Agreement, Adelise Services
Limited will transfer to Praetorian its shareholding in the Company
(6,595,950 ordinary shares), representing 5.14% of the Company's
issued share capital (the "Issued Share Capital"). In exchange,
Adelise Services Limited will receive 1,846,866 new ordinary shares
in Praetorian, and 923,433 subscription shares in Praetorian
granting Adelise Services Limited the right to subscribe for new
ordinary shares in Praetorian within the next three years at a
price of GBP0.70 per share. Adelise Services Limited is receiving
no cash under the terms of the Exchange Agreement.
Based on the Praetorian admission price of GBP0.50 per share,
the effective price of the EPO shares subject to the Exchange
Agreement is GBP0.14 per share. As a result of the Exchange
Agreement with Adelise Services Limited and other shareholders in
EPO, Praetorian will hold 9,947,950 shares in EPO, which will
equate to 7.75% of the Issued Share Capital.
Following this transaction, Adelise Services Limited no longer
has an interest in any Ordinary Shares of EPO. Adelise Services
Limited continues to hold warrants to acquire, in aggregate,
2,327,143 new shares in the Company at GBP0.175 per share. Michael
Frayne continues to hold options and warrants to acquire, in
aggregate, 1,399,318 new shares in the Company at GBP0.175 per
share.
Information on Praetorian
Praetorian is a newly formed natural resource focused investment
holding company incorporated in Guernsey which was admitted to AIM
on 9 July 2012. Praetorian's strategy is to invest in natural
resources stocks that provide exposure to long term growth in
demand for commodities such as palm oil.
Praetorian will utilise the contacts and skills of its board of
directors and international advisors to attract appropriate
companies for its portfolio of investments. The Praetorian board is
led by Richard Lockwood who has extensive experience in natural
resources fund management.
Praetorian has also stated in its admission document that it
intends to act as a supportive long term shareholder to its
investee companies and that it may also make additional on-market
purchases of shares in its investee companies as part of its
on-going investment strategy.
Praetorian's admission document is available at
www.praetorianresources.com. Praetorian's market capitalisation on
listing was approximately GBP20m.
Michael Frayne, Chairman of Equatorial Palm Oil, commented:
"This exchange of shares will see EPO secure a significant new
investor with a deep understanding of our industry, without
diluting existing EPO shareholders. Given Praetorian's investment
strategy and the track record of its management team, I look
forward to their support as we seek to implement our on-going
growth plans. Shareholders should be very encouraged by such a
strong endorsement of our investment case."
Richard Lockwood, Director of Praetorian, commented:
"Equatorial Palm Oil is exactly the sort of business in which we
would choose to invest. Palm oil is a fascinating market, whose
growth is underpinned by compelling demographic and macro-economic
trends. EPO's current valuation reflects neither this potential,
nor the platform they have already developed in Liberia. We are
very excited by their plans to capitalise on a vital global
commodity and look forward to a long and profitable
association."
For further information, please contact:
Equatorial Palm Oil plc
Michael Frayne (Chairman) +44 (0) 20 7766
www.epoil.co.uk 7555
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
James Harris / Paul Cocker 3494
Mirabaud Securities LLP (Broker) +44 (0) 20 7484
Peter Krens 3510
Pelham Bell Pottinger (Financial/ Corporate
PR) +44 (0) 20 7861
Archie Berens / Joanna Boon 3126
About Equatorial Palm Oil
Equatorial Palm Oil plc (EPO) is a UK publicly-listed entity
focused on becoming a global, sustainable, low-cost producer of
crude palm oil (CPO) through the reactivation and development of
its oil palm estates in Liberia, West Africa.
With up to 169,000 hectares, EPO plans to develop 50,000
hectares for production in the next 10 years, doubling to100,000
hectares in 15 years.
EPO operates Liberia's only commercial palm oil mill, which was
inaugurated in May 2011 by President Ellen Johnson Sirleaf. The
mill has a production capacity of 5 tonnes per hour of oil palm
fresh fruit bunches.
EPO is part of a joint-venture with Biopalm Energy Limited, a
subsidiary of the SIVA Group, which has paved the way for
accelerated development of land and the rehabilitation of 3,500 ha
of existing plantation.
EPO has made significant investment in local communities,
building roads, schools and health clinics. It employs 1,000 staff
and plan to increase that to 20,000, making it one of the largest
employers in Liberia.
EPO's operations are geographically well located for regional
supply and are close to deep water ports. Nearly 1 million tonnes
of crude palm oil are imported into West Africa each year and
demand continues to grow. By supplying the local market, EPO will
help in reducing imports and making a positive impact on the
community and regional economy.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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