Business
Update on the Proposed RTO and Trading Update o...
Update on the Proposed RTO and Trading Update o....
About this update from Everest Global Plc
[{"type":"text","content":"\n \n The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n 16 November 2020\n Anglo African Agriculture plc\n (“AAA” or the “Company”)\n \n \n Positive Update on the Proposed RTO and Positive Trading Update on Comarco\n \n The Company is providing an update on the proposed acquisition of the Comarco group of companies (the “Comarco Group”) and the associated fundraising. The Comarco Group is based in Mombasa, Kenya and is engaged in port and marine logistics activities in East Africa.\n AAA has been working with the management of the Comarco Group for over two years, assisting on the group’s operational restructuring and strategic positioning for growth. On 12 November 2018, the Board of AAA announced that a $1 million loan was advanced to provide general working capital to Comarco Group (the “Port Loan”). The Port Loan was provided as part of AAA’s assistance to restructure the Comarco Group. The Port Loan was repayable on 11 November 2020 and is currently accruing interest at 15%. As of 16 November 2020, the sum repayable under the Port Loan is approximately $1.3mn (c.£1mn), the repayable amount continues to increase as interest accrues daily. On 9 June 2019, AAA signed conditional share purchase agreements (the “SPAs”) to acquire the entire share capital of a number of the Comarco Group companies (the “Proposed Acquisition”). The SPAs were extended until 31 August 2020.\n As per the Proposed Reverse Takeover announcement dated 23 September 2020, the Board of AAA and Comarco Group have been discussing terms of a new extension of the SPAs. The Company is pleased to announce that it has signed a Heads of Terms agreement with Comarco Group that confirms the path to the Reverse Takeover (“RTO”).\n Highlights of Heads of Terms\n \n \n Interest in Enlarged Group: Comarco Group vendors will, prior to any fundraising as part of the RTO, have an approximate 93.7% interest and AAA will have an approximate 6.3% interest (ratios unchanged); This means that the ratio remains the same for the new ownership despite the fall in the AAA share price over the last 12 months\n \n Funding: The Parties have secured a non-binding...