(Alliance News) - Woodbois Ltd said Friday it signed an offtake deal for its timber production in Liberia with an unnamed West African timber supplier.
The forestry firm entered into the memorandum of understanding with the supplier to take all of its production from Liberia. A formal offtake deal is expected to be signed in January.
Under the deal, the supplier will have exclusive right of first refusal to purchase the wood produced from the country.
Once the formal offtake deal is signed, Woodbois expects the revenue from the agreement to be "material" in 2020 with "scope to increase as the agreement develops."
No further financial details were provided by London-based Woodbois. In 2018, Woodbois generated a USD5.6 million pretax loss on turnover of USD13.4 million.
"This agreement will allow us to further diversify the products we offer to our broad customer base," Chief Executive Officer Paul Dolan said. "We are delighted that the organisation with whom we have partnered in Liberia, has recognised the advantages of supplying through the Woodbois brand."
Shares in Woodbois were 0.2% higher at 6.06 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
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Woodbois (WBI)