Equatorial Palm Oil plc Accounts Update and Temporary Suspension (1464I)
June 28 2013 - 7:05AM
UK Regulatory
TIDMPAL
RNS Number : 1464I
Equatorial Palm Oil plc
28 June 2013
28 June 2013
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
PROPOSED GBP2.6M FUND RAISING
BUSINESS UPDATE
2012 REPORT AND ACCOUNTS UPDATE
TEMPORARY SUSPENSION OF TRADING ON AIM
Equatorial Palm Oil plc, (AIM: PAL), the AIM listed palm oil
development and production company with operations in Liberia, West
Africa announces that it is seeking to raise a minimum of GBP2.6m
to support the ongoing development of its oil palm estates ("Fund
Raising").
The Company will be undertaking a book build through its broker
Mirabaud Securities and has received conditional offers from
existing shareholders of up to GBP1.7m. Accordingly, the Company is
seeking from new and existing shareholders an amount of at least
GBP0.9m.
Business Update
The work being carried out by Ore Search Civil Liberia Ltd
("OSC"), an international earth moving contractor, to assist in
land preparation at Palm Bay estate is progressing extremely well.
In this calendar year to date the Company has planted over 1,000
hectares of oil palms at both Palm Bay and Butaw estates. The
appointment of OSC has significantly helped the Company to achieve
its strategic objectives through expanding the nurseries and land
preparation efforts in order to deliver on the large scale planting
programme.
Environmental studies at Palm Bay complete
Environmental reports for Palm Bay Estate have been submitted to
EPO's 50 per cent. owned joint venture company, Liberian Palm
Developments Limited ("LPD"), in final form by Coastal &
Environmental Services, the South African internationally
accredited environmental consultants. This is a key milestone for
the Company, being the culmination of over 2 years of work.
The environmental studies concluded, inter alia, that the oil
palm development at the Palm Bay estate is acceptable from an
environmental and social perspective, and will result in
sustainable benefits to the area.
African Export-Import Bank ("Afreximbank") was appointed as a
corporate advisory partner to LPD as announced on 13 February 2013
to put in place the anticipated long term debt funding of $140m
("the Facility"). The completion of these environmental reports
will now enable Afreximbank to engage with a number of development
finance institutions ("DFIs") in relation to the Facility.
Afreximbank will be arranging site visits to Liberia with the DFIs
in the coming weeks.
Background to and reasons for the Fund Raising
In December 2010, the Company entered into and announced a joint
venture with Biopalm Energy Limited ("Biopalm"), a subsidiary of
the SIVA Group, an Indian conglomerate. As agreed under the terms
of the joint venture agreement dated 10 December 2010 entered into
between Biopalm and EPO (the "JV Agreement"), EPO, in February
2011, transferred its oil palm assets in Liberia together with
US$7.5m to LPD and Biopalm transferred US$22.5 million to LPD.
Under the JV Agreement, Biopalm agreed to provide a guarantee (the
"Guarantee") against external funding raised by LPD up to US$30m
(the "External Funding"). It was agreed that in the event that the
External Funding is not arranged Biopalm shall contribute any
amounts required by LPD up to US$30m as debt on commercial terms.
To date this External Funding has not been provided.
EPO and Biopalm are in discussions for the provision of funds or
the giving of the Guarantee by Biopalm in accordance with its
obligations under the JV Agreement.
In the meantime the Company is seeking funds from new and
existing shareholders to support the Liberian operations. This fund
raise may also be open to a limited number of retail investors if
practicable to do so.
Report and Accounts Update
On the basis that the fund raise is in progress the Company has
not been able to finalise the Report and Accounts for year ended 31
December 2012.
Accordingly, the Company's securities will be temporarily
suspended from 28 June 2013 at 12 noon, pending publication of the
Company's Report and Accounts for 2012.
- END -
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc +44 (0) 20 7766
Michael Frayne (Chairman) 7555
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
James Harris / James Bellman 3494
Mirabaud Securities LLP (Broker) +44 (0) 20 7484
Peter Krens 3510
Pelham Bell Pottinger (Financial / Corporate
PR) +44 (0) 20 7861
Charlie Vivian / Joanna Boon 3867
Notes to editors:
Equatorial Palm Oil plc (EPO) is an AIM listed crude palm oil
(CPO) producer with palm oil estates in Liberia, West Africa. The
Company was founded in 2005 and is focused on becoming a global,
sustainable producer of high quality palm oil to regional and
international markets.
With significant land position in Liberia, EPO is geographically
well positioned to serve the international and regional markets and
is committed to making a positive impact on the community through
investment in local schools, health clinics, housing and
infrastructure.
The Company's 50:50 joint venture partner in LPD is Biopalm
Energy Ltd, a subsidiary of the Siva Group, which invests in oil
palm projects around the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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