World News: 21:06 GMT Friday 15th March 2019. [Feronia Inc. via Globe Newswire via SPi World News]
TORONTO, March 15, 2019 (GLOBE NEWSWIRE) -- Feronia Inc. (“Feronia” or the “Company”) (TSXV: FRN) is pleased to announce that it has entered into a loan facility for up to $8 million. All amounts in this press release are expressed in US dollars unless otherwise indicated.
The unsecured subordinated short term facility bears interest at a rate of 12% per annum and has been provided by CDC Group plc, the UK Government’s development finance institution, KN Agri LLC, the agricultural and food investment vehicle owned by funds that are managed by Kuramo Capital Management, LLC and Nile Capital Management, LLC, and Golden Oil Holdings Limited, a wholly owned subsidiary of the African Agriculture Fund, L.L.C. The facility matures on May 31, 2019, subject to acceleration in certain circumstances.
Funds advanced under the facility will be used for working capital and other general corporate purposes whilst the Company seeks to strengthen its financial position. This new facility is in addition to the $3 million facility previously announced by the Company on January 8, 2019.
To date, the Company has received advances under the new facility totaling $6.5 million.
The execution of the facility constitutes a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on valuation and minority approval exemptions set forth in MI 61-101.
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, 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 . 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.
Globe Newswire: 21:06 GMT Friday 15th March 2019
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