22 Dec 2016 12:00
22 December 2016
United Cacao Limited SEZC
("United Cacao" or the "Company")
Funding Update
United Cacao Limited SEZC (AIM: CHOC), the AIM-quoted cacao plantation company based in Peru, provides the following funding update.
The Board has, for some time, been exploring various funding options, both to cover short term liabilities and for the medium-longer term to fully develop United Cacao's plantation estate. In this regard, the Board is currently actively assessing non-binding funding proposals from several parties, including a possible subscription for further amounts of the Company's 7.00 per cent. secured convertible bonds ("Secured Bonds") and a proposal to subscribe for new ordinary shares of US$0.001 each in the Company ("Ordinary Shares"). Funding strategies under consideration may include a pre-emptive issue open to all shareholders.
The Board will provide further updates as soon as possible. Whilst the Board is confident that funding will be secured, there can be no guarantee that any further funding will be provided or as to the ultimate terms on which funds will be made available.
The Board further notes that any injection of funds, whether by way of a further subscription for the Secured Bonds or for new Ordinary Shares, would likely be at a discount to the par value of the Secured Bonds and current share price of the Ordinary Shares, the level of which is yet to be determined.
In the short term, the necessary funds to the paying agent to make the approximate six-monthly US$213,000 coupon payment on the Secured Bonds, which falls due on 31 December 2016, are being transferred.
Following this payment, the Company is taking to steps to manage its near term liquidity requirements, which may involve temporarily reducing operational activities at the Company's plantation in Peru and entering into a sale and leaseback transaction on certain of its heavy equipment located on-site in Peru. The Board is confident that, in the absence of a longer term funding proposal being agreed, and assuming ongoing management of short term payables, the steps outlined above would provide the Company with enough working capital until at least February 2017.
For more information please visit www.unitedcacao.com or contact:
United Cacao Limited SEZC | +1 345 815 2710 |
Constantine Gonticas |
|
|
|
Strand Hanson (Financial & Nominated Adviser) | +44 (0) 20 7409 3494 |
James Harris / James Spinney / Ritchie Balmer |
|
|
|
Beaufort Securities (Joint Broker) | +44 (0) 20 7382 8300 |
Jon Belliss / Elliot Hance |
|
|
|
Kallpa Securities SAB (Joint Broker) | +51 1 630 7500 |
Ricardo Carrion |
|
|
|
Tavistock (PR Adviser) | +44 (0) 20 7920 3150 |
Niall Walsh / Jos Simson |
|
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").