Thu, 8th Dec 2016 07:00
Anglo African Agriculture PLC - Update on Sale of Guar JV Interest
London, December 7
|8 December 2016|
Anglo African Agriculture plc
(“AAA” or the “Company”)
Anglo African Agriculture Updates on Sale of Guar Bean JV interest
First payment received from PMR
Anglo African Agriculture plc (LSE: AAAP), the London Main board listed food manufacturing company is pleased to announce that its Guar Bean joint venture company, African Projects and Ventures (“APV”), has received the initial loan of ZAR 560,000 (c.£31,500) from Prime Meridian Resources Corporation (“PMR”) as the first part of the transaction to sell AAA’s 49.9% indirect interest in this loss making entity (the “Transaction”). This Transaction was previously announced by the Company on 22 November 2016.
Under the terms of the Transaction, PMR was required to pay ZAR 560,000 (c.£31,500) by way of an initial loan to APV in order to settle existing creditors and then make monthly payments of ZAR 150,000 (c.£8,400) to APV to fund ongoing operations for a further 4 months whilst the Transaction closed.
The completion of the Transaction, which would see AAA’s subsidiary, Dynamic Intertrade (Pty) Limited (“DI”), receive a full and final payment, net of any loans advanced by PMR, of ZAR 1.4 million (c.£80,000), is subject to PMR securing their necessary funding. However the Company expects the Transaction to conclude in early 2017.
David Lenigas, the Company’s Chairman, commented:
“As announced last week, AAA has seen outstanding growth from its main food manufacturing and agricultural commodity trading businesses in the past few months. Having taken us now through critical mass we are now gearing up for a very strong trading performance for 2017. To relieve the Company of any further financial obligation and undue stress with what is now our only loss making business is important for the future growth potential we now see in front of us.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon the publication of this announcement via Regulatory News Service ("RNS"), this inside information is now considered to be in the public domain.
For further information, please contact:
|Anglo African Agriculture plc||+44 (0) 20 7440 0640|
|David Lenigas, Non-Executive Chairman Rob Scott, Non-Executive Director|
|VSA Capital Limited (Financial Adviser and Broker)||+44 (0) 20 3005 5000|
|Andrew Raca / James Asensio|
Notes to Editors:
Anglo African Agriculture (LSE: AAAP) is a London Stock Exchange Main board listed food manufacturing and agricultural commodity trading company. AAA is the 100% owner of Dynamic Intertrade (Pty) Limited.
Dynamic, works from its modern 3,000 m² FSSC compliant facility in Cape Town and is focused on the manufacture, import and distribution of herbs, spices and seasonings for the food manufacturing sector. It has the required approvals and licenses to export Dynamic’s products globally. Dynamic also offers Halaal and Kosher Certification on all of its products and these products can either be purchased under Dynamic’s own brand or contract packed and labelled under customer’s own label. Dynamic has created its own bottled spice range and is looking to commercialize it both locally and internationally.