Corporate Update

RNS Number : 3446T

Amala Foods PLC

17 March 2023

 

Amala Foods Plc

( " Amala " or the " Company")

Corporate Update

Amala Foods Plc (LON: DISH), a suspended Main Market listed shell company, is pleased to provide a Corporate Update.

Highlights:

· Termination of the proposed transaction with Terra Rara UK Ltd;

· Appointment of Celia Li to the Board of Directors;

· New funding of £405,000 raised through the subscription of Convertible Loan Notes (CLN);

· Publication of Annual Financial Report expected at the end of March.

The Company has terminated the proposed transaction with Terra Rara UK Ltd ("Terra Rara").  This decision was taken due to identified administrative issues relating to some of the mining assets of Terra Rara following further due diligence. Terra Rara are seeking to develop mining exploration assets in two countries in Africa, where due diligence is lengthy and complex.  The Company is pursuing the return of $125,000 due from Terra Rara.  The Company hopes that Terra Rara are able to monetise their Rare Earth Elements (REE) assets in due course.

The Company has appointed with immediate effect, Celia Li to the Board as a Non-Executive Director.

Ms Li is executive director of Drylab Media Tech Group Plc as their Chief Marketing Officer and is an international media executive and renowned TV presenter for the world's largest independent Chinese TV broadcaster Phoenix Satellite Television Holdings Ltd. Ms Li set up Phoenix TV's European news division in 2004 where she heads the news team. Ms Li also has extensive experience in marketing and investor relations. She has built up during the past 15 years substantial relationships with both corporates and investors across Asia, Europe and North America.

Furthermore, the Company is pleased to announce that new funding of £405,000 has been raised through the subscription of Convertible Loan Notes.  The CLNs carry zero interest and will convert at Re-admission upon a Reverse Takeover at a 50% discount to the Re-admission price.  A Director, Aidan Bishop has also subscribed to £40,000 of the CLN.

The board have removed non-essential costs during the period of suspension and the directors are not receiving any remuneration both prior to and during the period of suspension. Accordingly, the board are confident that the proceeds of the CLN provide sufficient capital to ensure that the Company is well prepared to undertake a reverse takeover once a target has been identified.

The Company now expects to publish its Annual Financial Report at the end of this month.  The delays have been largely due to the busy season and resourcing challenges faced by the Company's auditors.  Upon publication, the Company will make application to restore the listing to the Main Market. 

The Company is now actively seeking to identify new opportunities to generate value for shareholders and with having secured new funding in line with the CLNs, the Directors look forward to updating the market in due course.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR").

Enquiries:

Jonathan Morley-Kirk, Non-Executive Chairman

[e-mail]  

 

END

 

 

UPDUBVSRORUOARR