27th Oct 2015 15:59
LONDON (Alliance News) - United Cacao Ltd said Tuesday it has secured commitments to subscribe for USD6.1 million of its 7.00% secured convertible bonds, and has raised USD1.3 million in an equity placing in Peru.
The cacao plantation company will use the proceeds of the bond issue, the equity placing, and its existing cash resources to finance additional planting of its owned-plantation estate, and to part fund the roll-out of the 'Programa Alianza Producción Estratégica Cacao' plan, it planting strategy, as well as for general working capital.
United Cacao is planning to raise up to USD10 million through the issue of up to 10 million secured convertible bonds of USD1.00, with a maturity date of end-June 2019.
It has received commitments for USD6.1 million of this USD10 million fund-raising from new and existing investors, including commitments from its Executive Chairman and Chief Executive Officer Dennis Melka to subscribe for USD1.08 million, and from Non-Executive Constantine Gonticas to subscribe for USD200,000.
It also has placed 474,074 shares on the Lima Stock Exchange at a price of USD2.70, or approximately 176 pence, raising USD1.3 million.
Shares in United Cacao were down 2.6% at 185.00 pence in London Tuesday afternoon.
"We are delighted at the success of the capital raising which allows the company to continue its aggressive planting programme and roll-out of its small farmer initiative. The company seeks to be the world's largest and lowest cost producer of cacao when the planting of its owned estates is completed in 2017," said Melka in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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