Woodbois Regulatory News (WBI)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.

THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY, AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES OF OBTALA LIMITED.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT AMOUNTS TO A FINANCIAL PROMOTION FOR THE PURPOSES OF SECTION 21 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 ("FSMA") AND HAS BEEN APPROVED BY PRIMARYBID LIMITED WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FRN 779021)

2 February 2018

Obtala Limited

("Obtala" or the "Company") (AIM: OBT)

Additional Fundraising of at least £0.68m ($0.96m) via a Subscription, an Institutional Placing and Offer via PrimaryBid

Obtala Limited (AIM: OBT), the African focused agricultural and forestry company, is pleased to announce, further to the subscription to raise £4.5m (US$6.25m) (before expenses) announced on 30 January 2018, a further fundraising of at least £0.68m ($0.96m) (before expenses) through the issue of at least 5,463,011 new ordinary shares of £0.01 each in the Company ("New Ordinary Shares") at an issue price of 12.5 pence per New Ordinary Share (the "Issue Price"), being a discount of 9.1 per cent to the closing mid-price on 1 February 2018.

The fundraising comprises a firm institutional placing (the "Placing") by Brandon Hill Capital Limited and Beaufort Securities Limited, as joint brokers to the Company, a further subscription to invest in the Company (the "Subscription"), as well as a retail investor offer via PrimaryBid (the "Offer") (together the "Fundraising").

Each new Ordinary Share issued in connection with the Fundraising will be issued with a warrant which is convertible into one new Ordinary Share. The warrants will be exercisable at the request of the holder at any time in the 2 years following issue (being the date of Admission) with an exercise price of 20p each.

Firm Placing

The Company has raised £0.6m ($0.85m) (before expenses) via a placing by Brandon Hill Capital Limited and Beaufort Securities Limited, through the issue of 4,840,600 New Ordinary Shares (the "Placing Shares") at the Issue Price.

Application will be made for admission to trading on AIM of the Placing Shares and dealings in the Placing Shares are expected to start on 8 February 2018.

Subscription

The Company has received a further subscription for £0.078m ($0.11m) from private investors through the issue of 622,411 New Ordinary Shares (the "Subscription Shares") at the Issue Price.

Application will be made for admission to trading on AIM (conditional upon receipt of the relevant subscription proceeds) for 80,000 of the Subscription Shares which are expected to be admitted to trading on AIM on 28 February 2018 and 542,411 of the Subscription Shares which are expected to be admitted to trading on AIM on 30 March 2018.

The Placing Shares and Subscription Shares will be issued free of all liens, charges and encumbrances and will, when issued and fully paid, rank pari passu in all respects with the Company's existing Ordinary Shares.

Offer

The Company values its retail investor base and is therefore pleased to provide private and other investors the opportunity to participate in the Fundraising by applying exclusively through the PrimaryBid.com platform. PrimaryBid does not charge investors any commission for this service.

The Offer, via the PrimaryBid.com platform, will be open to individual and institutional investors from 4.30 p.m. on 2 February 2018 to 5 p.m. on 4 February 2018. The Offer may close early at the Company's discretion.

The Company is seeking to raise further funds via the issue of New Ordinary Shares (the "Offer Shares") at an issue price of 12.5 pence (representing a discount of 9.1 per cent to the closing mid-price per Ordinary Share on 1 February 2018).

Subscriptions under the Offer will be considered by the Company on a "first come, first served" basis, subject to conditions (which are available to view on PrimaryBid.com) with any investment request over £100,000 first requiring consultation with the Company.

No commission is charged to investors on applications to participate in the Offer made through PrimaryBid. It is vital to note that once an application for New Ordinary Shares has been made and accepted via PrimaryBid, an application cannot be withdrawn.

For further information on PrimaryBid.com or the procedure for applications under the Offer, visit www.PrimaryBid.com or call PrimaryBid.com on +44 (0)20 7491 6519. 

A further announcement will be made by the Company on 5 February 2018 in relation to the Offer.

Application will be made for admission to trading on AIM of the Offer Shares in due course and dealings in these New Ordinary Shares are expected to start on 8 February 2018.

The Offer Shares will be issued free of all liens, charges and encumbrances and will, when issued and fully paid, rank pari passu in all respects with the Company's existing Ordinary Shares.

Use of Funds

The funds will be used for further supplier pre-payments, capital expenditure in Mozambique and general working capital purposes as set out in the announcement of 30 January 2018.

Investor Presentation

The investor presentation for the Fundraising is available on the company's website. Any materials or information set out on the Company website have not been approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by PrimaryBid Ltd and are the responsibility of Obtala Ltd.

Details of the Offer

The Company highly values its retail investor base which has supported the Company alongside institutional investors over several years. Given the longstanding support of retail shareholders, the Company believes that it is appropriate to provide retail and other interested investors the opportunity to participate in the Fundraising. The Company is therefore making the Offer exclusively through PrimaryBid.com.

Retail and other investors may participate in the Offer of New Ordinary Shares on a first come, first served basis, exclusively through PrimaryBid.com.

The Company is raising further funds via the Offer, through the issue of New Ordinary Shares at the Issue Price, payable in full on acceptance.

The Offer is offered under the exemptions against the need for a prospectus allowed under the Prospectus Rules. As such, there is no need for publication of a prospectus pursuant to the Prospectus Rules, or for approval of the same by the Financial Conduct Authority in its capacity as the UK Listing Authority. The Offer is not being made into any Restricted Jurisdiction or any other jurisdiction where it would be unlawful to do so.

There is a minimum subscription of £1,000 per investor under the terms of the Offer which is open to existing shareholders and other investors subscribing via PrimaryBid.com. This allocation will be filled on a "first come first served" basis.

Any investment request in excess of £100,000 will require the Company's consent and may be subject to scale back.

For further details please refer to the PrimaryBid.com website at www.PrimaryBid.com. The terms and conditions on which the Offer is made, including the procedure for application and payment for New Ordinary Shares, is available to all persons who register with PrimaryBid.com.

Investors should make their own investigations into the merits of an investment in the Company. Nothing in this announcement amounts to a recommendation to invest in the Company or amounts to investment, taxation or legal advice.

It should be noted that a subscription for New Ordinary Shares and investment in the Company carries a number of risks. Investors should consider the risk factors set out on PrimaryBid.com before making a decision to subscribe for New Ordinary Shares. Investors should take independent advice from a person experienced in advising on investment in securities such as the New Ordinary Shares if they are in any doubt.