LONDON (Alliance News) - Shares in Anglo African Agriculture PLC rose Friday as it said it has received enough funding to finance a loan for a strategic logistics port in Kenya.
Shares in the agriculture-focused investment company were up 18% at 0.59 pence each.
Around GBP1.1 million was raised through a subscription raising GBP805,000 by issuing 161.0 million shares at 0.5 pence per share, and the issue of GBP250,000 of convertible loan notes, with a conversion price of 0.75p.
The holder of the loan notes will be paid an annual interest rate of 12% in cash within a term of 24 months. If all loan notes are converted, 33.3 million shares would be issued, reflecting 7.9% of the company issued share capital.
At the end of August, Anglo African signed a memorandum of understanding to finance the growth of Kenya-based port and logistics group Comarco Group.
The port facility is privately owned and totals 16.2 acres including over 40,000 square metres of storage space, office space and facilities, as well as crawler cranes and a 24-hour operations centre.
Although the specific use of funds has not yet been agreed, it will include the repayment of Comarco's historic debt as well as use for working capital purposes.
"This is the start of a transformation for AAA and I believe now that the loan is funded, we can work together with Comarco in the best interests of all our respective shareholders. The Directors are confident this will present positive future opportunities and markets to the company," said Chairman David Lenigas.
Anglo African Agriculture now has 388.0 million shares issued overall.
