New Term Loan and Related Party Transaction

Nov 15, 2023 | News, RNS

RNS Number : 4504T
Agriterra Ltd
15 November 2023

Agriterra Limited (‘Agriterra’ or the ‘Company’)

Agriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture

New Term Loan and Related Party Transaction

Agriterra Limited, the AIM-quoted African agricultural company, is pleased to announce that it has concluded an unsecured US$1.7m term loan (“Term Loan“) with Magister Investments Limited (“Magister“), its majority shareholder, which will:

·    enable the group to replace the c. US$1.325m higher cost external finance from Standard Bank S.A.;  

·    facilitate the purchase in Mozambique by the Company’s wholly owned subsidiary, Desenvolvimento e Comercialização Agricola, Limitada (“DECA“), of various capital equipment which will be used in country to drive growth of the Company’s biscuit plant operations through accessing new revenue streams; and

·    provide the Company with US$150,000 of “head office” working capital.

The material terms of the Term Loan are as follows:

·    Duration of 12 (twelve) months, with principal and interest (as described below) due at the end of the term, subject to extension if requested by the Company by a further 12 (twelve) months (on one or more occasions) by notice in writing provided by Magister to the Company at any time prior to the maturity.

·    Interest will be charged on this facility at the rate of SOFR (at the start of each 12 (twelve) month period, if applicable) + 6% per annum (or part thereof, if applicable), on a daily basis, be compounded quarterly and paid in full on the maturity date.

·    No arrangement fees are payable.

The Term Loan agreement contains customary conditions precedent, events of default, representations & warranties and covenants, including various negative pledges provided to Magister.

Related Party Transaction

Entering into the Term Loan constitutes a related party transaction under Rule 13 of AIM Rules. In this context, Caroline Havers, Neil Clayton and Sergio Zandamela (being the Directors on the Board who are considered to be independent of Magister) consider, having consulted with the Company’s nominated adviser, Strand Hanson Limited, that the terms of the Term Loan are fair and reasonable insofar as its shareholders are concerned.

Caroline Havers, Non-Executive Chair, said: “The repayment of local bank borrowings in Mozambique will reduce the impact of the high interest rates charged by domestic banks. In addition, the financing of the acquisition of new capital equipment by DECA will support ongoing efforts to diversify our product and revenue streams as we seek to solidify our base operations. We thank Magister for its continued support in providing this new financing, which demonstrates its ongoing commitment to our business and shareholder base.”

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END

2023 Annual Accounts Timetable

Sep 13, 2023 | News, RNS

RNS Number : 0583M
Agriterra Ltd
11 September 2023

Agriterra Limited (‘Agriterra’ or the ‘Company’)

Agriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture

2023 Annual Accounts Timetable

Agriterra Limited, the AIM-quoted African agricultural company, provides the following update on its 2023 Annual Accounts timetable.

The Company now expects to report its 2023 Annual Report & Accounts (the “2023 Accounts”) for the year ended 31 March 2023 during the course of October 2023. The delay in publishing the 2023 Accounts is predominantly due to the impact of the recent restructuring of operations in Mozambique delaying the provision of certain audit information to the Company’s auditors in accordance with previously agreed timetables. Although substantially all of the information has now been provided, the Company’s auditors no longer have sufficient resources and capacity to be allocated to the assignment and accordingly are not able to complete their work by the end of September 2023.

As a result of this delay, the Company is not able to comply with the requirements of AIM Rule 19 of the AIM Rules for Companies, which requires publication of the 2023 Accounts within 6 months of the year end. Accordingly, the Company’s ordinary shares will be suspended from trading on AIM with effect from 7:30 a.m. on Monday 2 October 2023. The temporary suspension from trading on AIM will be lifted once the 2023 Accounts have been published (during October 2023, as noted above).

Notwithstanding the temporary suspension of trading in the Company’s ordinary shares, the Company will continue to make announcements as and when there are any developments that require announcement in accordance with its obligations under the AIM Rules for Companies.

** ENDS **

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

For further information please visit www.agriterra-ltd.com or contact: