Business
Disposal of Sierra Leone Cocoa Assets
Disposal of Sierra Leone Cocoa Assets.
About this update from Pacsco Limited
[{"type":"text","content":"\n \nRNS Number : 9891G Agriterra Ltd 02 June 2017 \n\nThe information communicated 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 \nAgriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture\n2 June 2017\nAgriterra Ltd ('Agriterra' or the 'Company')\nDisposal of Sierra Leone Cocoa Assets \n \nAgriterra announces that it has today completed the sale of its Sierra Leone cocoa assets for a cash consideration of US$500,000 (the \"Disposal\"). \n \nUnder the terms of the Disposal, the Company disposed of its interests in Tropical Farms Limited and Tropical Farms Plantations (SL) Limited (the local companies which hold the assets comprising the Company's cocoa business in Sierra Leone, the \"Target Companies\") with immediate effect against payment in full. The Target Companies have been sold in excess of their collective current book value of approximately US$250,000. \n \nAs stated previously, the Company has successfully established the necessary infrastructure from which a large scale commercial cocoa plantation and trading business can be developed in Sierra Leone. The next stage in the development of these assets requires significant capital investment. Given the impact of Ebola on the West African region as a whole and the lack of investment appetite from traditional finance sources, the board have formed the view at this time, after due investigations and careful consideration, that the Company is unlikely to be able to raise the finance to continue with the development of the cocoa plantation in the foreseeable future. In this context, the board therefore believe that it is in the best interests of the Company to complete the Disposal to bolster the Company's cash reserves and to enable the new owners to develop this Sierra Leonean asset base. \n \nThe Disposal is part of the Company's ongoing rationalisation programme. The proceeds of the Disposal will be applied towards the Company's general working capital requirements. \n \nAndrew Groves, CEO of Agriterra commented \"We are proud of the investments made and the developments we promoted in Sierra Leone since 2011. We are also...