Feronia Inc. announces closing of second tranche of secured convertible debenture offering
TORONTO, ONTARIO -- (Marketwired) -- 11/27/15 -- Feronia Inc. ("Feronia" or the "Company") is pleased to announce that it has entered into a subscription agreement with the African Agriculture Fund, through its subsidiary Golden Oil Holdings Limited ("GOHL"), for the private placement of up to US$5,000,000 of the previously announced $17,500,000 of secured convertible debentures (the "Debentures") as described in the Company's press release issued on November 5, 2015.
The Company is also pleased to announce that it has closed a tranche of the private placement of Debentures with GOHL in the principal amount of US$1,800,000, having previously closed the first tranche with CDC Group plc in the principal amount of US$10,000,000, as described in the Company's press release of November 9, 2015.
The terms of the Offering are described in the press release of the Company issued on November 5, 2015.
About Feronia Inc.
-- Feronia is an agribusiness operating in the Democratic Republic of the
Congo (DRC).
-- At the heart of Feronia lies a long established palm oil business,
Plantations et Huileries du Congo (PHC), which has three remotely
located plantations; Lokutu, Yaligimba and Boteka. We also have an
arable farming operation which grows and processes rice.
-- When Feronia acquired its palm oil business from Unilever in 2009, it
had suffered from years of underinvestment and considerable disruption
caused by conflict in the DRC. Our initial focus has been on rebuilding
the business and resuming production to secure its future and the
livelihoods of the 3,800+ people we directly employ.
-- Feronia's plantations produce crude palm oil (CPO) and palm kernel oil
(PKO). CPO is part of the staple and traditional diet of the Congolese
and, with our products sold locally in the DRC, we are well placed to
help decrease reliance on imports and increase food security and
quality.
-- Feronia prides itself on being the guardian of our 104 year-old palm oil
business and its employees, communities, and environment. We have a long
term commitment to improve the living and working environment of our
employees and their communities and are committed to sustainable
agriculture, environmental protection and community inclusion. Feronia
has in place an Environmental and Social Action Plan which is focused on
implementing environmental and social best practice and improving social
infrastructure.
-- Feronia is working towards certification by the Roundtable for
Sustainable Palm Oil (RSPO) and is implementing IFC/World Bank standards
for environmental and social sustainability. Our oil palm replanting
programme is brownfield in nature - replacing old palms with new - and
it has no reliance on deforestation.
-- Feronia's management team is comprised of senior agriculturalists with
extensive experience in managing both plantations and farming operations
in emerging markets.
-- For more information please see www.feronia.com
Cautionary Notes
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 one major customer, lower productivity at the Company's plantations and arable farming operations, 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, 2014, a copy of which is available on the Company's SEDAR profile at www.sedar.com. 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.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Feronia Inc.
Xavier de Carniere
Chief Executive Officer
44 (0)7468 697 658
www.feronia.com
Feronia Inc.
Paul Dulieu
Investor Relations Manager
44 (0)7554 521421
www.feronia.com
