Further re Corporate Update

RNS Number : 3620D

Amala Foods PLC

02 March 2022

 

Amala Foods Plc

( " Amala " or the " Company")

Further re: Corporate Update

Amala Foods Plc (LON: DISH), a food technology company, is pleased to announce a further update to the previous Corporate Update on 17 February 2022.

The Company continues to progress dialogue with Terra Rara UK Ltd with regards to the potential transaction and has executed an updated term sheet which will form the basis of a definitive   agreement.  Due diligence is now in process with a view to the execution of an agreement to acquire the entire issued and to be issued share capital of Terra Rara UK Ltd which holds majority interests via two subsidiaries in several exciting Rare Earth Elements (REE) projects in Uganda and Angola as announced previously.

The Company has executed an updated term sheet with improved terms that is subject to the   execution of a definitive agreement.  The terms set out in the term sheet will provide current   shareholders with 30% of the enlarged Company .  Based on the current number of outstanding   shares and the new FCA requirement of a minimum market capitalisation of  £30 million for new listings that came into force on 3 December 2021, if successful, this provides a " see through " valuation of approximately 2p per share.  The Company can confirm that it is also working with known funding partners who have committed, subject to satisfactory due diligence, to provide the funding for the transaction, at the valuation above, in sync with Terra Rara vendors. 

Whilst the Directors are optimistic that the transaction will conclude, there can be no guarantees.

A i dan Bishop, Director, commented:

"Should this transaction conclude it will result in a complete transformation for the Company."

Enquiries:

Jonathan Morley-Kirk, Non-Executive Chairman

[e-mail] 

 

END

 

 

FURBKBBDCBKKONK