RE: Punt19 Apr 2023 11:20
On AIM, Woodbois plunged 65%.
The Africa-focus forestry, timber and afforestation company said its lender, Sydbank, is terminating the USD6 million debt facility of its wholly-owner subsidiary Woodgroup ApS.
"The reason cited by Sydbank for terminating the facility was that Woodgroup ApS generated a loss in Q1 2023. Sydbank believe that, as a consequence, the circumstances of Woodgroup ApS have changed significantly to their detriment," Woodbois explained.
Woodbois said it was "shocked" by the decision, and will explore alternative funding sources.
"Whilst it expects a difficult trading period in the short term, management believe that the fundamentals of the business are sound," it affirmed.