8 Dec 2020 09:32
08 December 2020
Cambium Global Timberland Limited
(the "Company")
Portfolio Update
The Company announces the signature on 07 December, 2020 of two separate agreements with different purchasers (of which one is conditional) for the sale of the land of Forquilha Farm, located in the State of Minas Gerais.
Contract 1 is for a value of Brazilian Reals 3,473,565.00 (£498,519) and is made up of three designated areas. Area 1, amounting to £235,216 of the consideration, is due to be paid for in full within two days of execution. Areas 2 and 3, amounting to £263,303 of the consideration, are due to be paid for in three equal instalments within two days of execution and then 12 months and 24 months after the date of the first payment. Title will only pass to the buyer for each area as payments are completed.
Contract 2 is for a value of Brazilian Reals 15,389,148.75 (£2,208,620). All monies are due to be received over a 24 month period in 3 equal instalments. Title will only pass to the buyers at the end of the payment period. Part of this area also carries a standing Eucalyptus crop which has already been sold separately to another party with payments due to Cambium over the next 24 months as the wood is harvested.
The aggregate contracted sales prices, excluding the mature wood at Forquilha, translate to £2.7m at current exchange rates. These assets had been carried at £1.9m in the 30 April 2020 Annual Report and Accounts after allowing for the costs of sale.
These further sales are in line with the Company's investing policy to realise its assets and will reduce operational expenditure and expedite further returns to shareholders in due course.
Upon completion of the above sales of these two properties, the Company's sole remaining investment property will be its claim on the Lizarda property in Tocantins State which has been valued at zero in the Company's accounts.
Tony Gardner-Hillman, Chairman, welcomed these additional significant steps in the right direction which brings Cambium very close to the end of its stated aim to realise its assets.
For further enquiries please contact:
Chairman
Tony Gardner-Hillman
01534 486980
Broker and Nominated Adviser
W H Ireland
James Joyce
020 7220 1698
Administrator and Company Secretary
Praxis Fund Services (Jersey) Limited
01534 835831
Inside information
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.
LEI: 213800YGRM8HG1S74M46