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Agriterra, an AIM-listed pan-African agricultural company, plunged after it announced it had sold its 20% legacy interest in the South Omo Block in Ethiopia for at least $40m, but was still waiting for $11m owed to it for work undertaken and investments it made in the Block Ba oil concession area in South Sudan. The company's shares were down 19% on the news, despite the company's Chief Executive Andrew Groves saying £50m - the company's market capitalisation at the start of the day - did not fully reflect the "considerable value of Agriterra's growing agricultural businesses". Shares were down 19% following the news.
Still not sure I understand the reaction today or at least the extent of it .... as petertee states re focus - I will be looking for some juicy acquisitions in the future with the cash once they have it all tucked away.
coverage Agricultural company Agriterra (AGTA) has agreed to sell its 20% legacy interest in an oil exploration block in Ethiopia for an initial cash consideration of 40 million dollars (24.8 million pounds) and a further 10 million dollars (6.2 million pounds) if a commercial discovery is made. The firm will use the proceeds will be used to fund its growth plan in Mozambique to increase its beef herd from 4,000 to 10,000 by 2015. The group also plans to build a 4,000 head per month capacity abattoir and increase its cocoa operations in Sierra Leone. Meanwhile, the firm noted that it is still awaiting the 11 million pound payment relating to the disposal of its South Sudan legacy oil asset. The shares crashed by 1.23p to 3.77p.
Recently the ceo put a price of GBP4 plus on these shares when the oil was hit. NOW? Bet they have all covered themselves. One tipper I just read re great potential in Omo region and Kenya. May the curse of Africa be upon the board.
Agriterra's focus is to invest in or acquire businesses and projects operating in the agricultural and associated civil ...
Yet a $50 million cash injection is no small change - is it?
massive sell-off today is totally unjustified - imo
true although its $50 million (not 50 million GBP)
not many companys pocket £50 million and then see thier share price drop by a quarter,hey but this is aim afterall.
Agriterra CEO Andrew Groves said, "The sale of our legacy South Omo interest provides us with a dramatic cash injection. As a result, the current market capitalisation of just over £50m does not fully reflect the considerable value of our growing agricultural businesses
have notice fallers borad 60m traded,yet only 48m showing on buy/sell on here??might see some big traids after close.
MMs must be loving all the sells they getting,be nice profit for the bloodsuckers when this start to rise.
I wounder if there being manipulated so big boys can get in cheap ???????? bizare drop to me
It was a very good RNS - AGTA will receive $50 million from sale of 20% OMO (so really the share-price should be North of 6p at least - imo - so the huge drop today is crazy - and sp should be back over 5p soon - possibly today?)
could someone unlighten me if it was a bad rns.
Me to got 67500 now but average still 4.44p need an upward trend now to were they should 5/6p
just bought £500 worth as i believe this will bounce when news has settled as i did not see much really wrong with the rns to justify this drop so its worth a small punt.
now Market Cap is down to 40 million but the CEO thought 50 million was TOO LOW !!!
Agriterra CEO Andrew Groves said, "The sale of our legacy South Omo interest provides us with a dramatic cash injection. As a result, the current market capitalisation of just over £50m does not fully reflect the considerable value of our growing agricultural businesses
could well be right there mate, as sp right now is insane, comperd to what mkt cap is and will be.
Cant help but feel the only way to make sense of this fall is 20% stop losses being hit Once they are cleared I fully expect the SP to motor to 6p By dicyice
plus net current assets = much more than present share-price - so there has been a massive over-sell here - expect price to recover soon - imo