Business
New Trade Finance Package and RPT
New Trade Finance Package and RPT.
About this update from Pacsco Limited
[{"type":"text","content":"\n\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 \n18 August 2023\nAgriterra Limited ('Agriterra' or the 'Company')\nAgriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture\n \nNew Trade Finance Package, Operational Restructure and Related Party Transaction\n \nAgriterra Limited, the AIM-quoted African agricultural company, is pleased to announce that it has concluded a trade finance package with Magister Investments Limited (\"Magister\"), the Company's 50.58 per cent. shareholder, which will:\n \n· significantly reduce the finance costs associated with maize purchasing in Mozambique by the Company's wholly owned subsidiary, Desenvolvemento E Comercializacao Agricola, Limitada (\"DECA\");\n \n· facilitate the purchase by DECA of various capital equipment which will be employed by its operations in Mozambique to drive growth through accessing new revenue streams and improving operational efficiencies; and\n \n· enable the group to replace the external finance provided by First Capital Bank, S.A. announced on 14 June 2023.\n \nIn addition, the Company announces that it has implemented a significant operational cost savings restructure within its Mozambique subsidiaries DECA, Compagri, Limitada and Mozbife, Limitada (together the \"OpCos\").\n \nCaroline Havers, Executive Chair, said: \"The purchasing aspect of our maize treatment and processing operations in DECA have typically been financed by local external lending. By securing finance from Magister to purchase maize, we will significantly reduce our purchasing costs and position DECA to generate strong revenues from its maize meal sales, during the selling season. In addition, the new financing will assist in the acquisition of new capital equipment by DECA and will support ongoing efforts to diversify our product and revenue streams. This will allow us to access local informal markets, as we seek to solidify our base of operations. We thank Magister for their continued support in providing this new financing, which demonstrates ...