30th Jun 2016 14:31
LONDON (Alliance News) - African-focused agricultural and forestry company Obtala Resources Ltd on Thursday said it has entered into two separate agreements with a high-net-worth investor and Chairman Miles Pelham for an inward investment of USD500,000 into the Meradell (2) Ltd forestry investment vehicle.
The investment proceeds will be used to further develop production capabilities within the group's forestry division by building additional drying units and investing in other operating machinery.
Pelham and the Hong Kong-based high net worth investor will invest USD250,000 each. Following the transaction, Pelham will have a shareholding of 1.4% in Meradell and the unnamed Hong Kong investor will have a 1.7% shareholding. Both have the right to put the investment back to Obtala for the amounts invested, payable in cash or Obtala shares at Obtala's choice.
"This important investment enables further expansion of our production capabilities at a time when timber orders are robust and in quantities that exceed our current capacity by several multiples," Pelham said in a statement.
"With the recent strengthening of the management capabilities in-country I look forward to continued progress in the efficient scaling of our expansion plans for the forestry division," he added.
Shares in Obtala were trading down 3.2% at 7.86 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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