DECA

Disposal of Sierra Leone Cocoa Assets

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 Europe

Tel: +44 (0) 20 7894 7000

Michael Reynolds

Cantor Fitzgerald Europe

Tel: +44 (0) 20 7894 7000

 


This information is provided by RNS
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