Issue of New Shares

RNS Number : 4079A

Cambria Africa PLC

19 February 2014

Cambria Africa Plc
("Cambria" or the "Company")

Issue of New Shares

· Cambria announces it has raised USD4.06 million via the placement of approximately 33 million new ordinary shares at 7.5 pence per Ordinary Share (the "Placing")

· The over-subscribed Placing has received support from Directors and management, who jointly subscribed for 12% of the offering

· Existing shareholders supported the Placing by subscribing for 24% of the offering

· Peterhouse Corporate Finance, co-broker to the Company, as well as WH Ireland, co-broker and nominated advisor to the Company, subscribed for 1% and 3% respectively, of the offering

Cambria (AIM:CMB) is pleased to announce that approximately USD4.06 million (before expenses), or GBP 2.4 million, has been raised by a placing with new and existing institutional and other investors of 32,406,139 new ordinary shares in the Company (the "Placing Shares").

The placing price was 7.5 pence per Ordinary Share (the "Placing"), being a 9.6% discount to the 30-day volume weighted average market price on 10 February 2014.

The Placing will provide working capital to support the Company's expansion strategy for Millchem Holdings (Millchem) and Payserv Africa (Payserv) as outlined in its recent Trading Update. In line with this strategy, a multi-year, regional and product roll-out strategy for both Millchem and Payserv has been developed and Cambria is excited about the return prospects offered by these two investments.

The Company has received acceptances in respect of the Placing Shares. The Placing will complete on receipt of cleared funds and the Company will then make an announcement of the issue of the Placing Shares and their date of admission to trading on AIM. The Placing Shares will rank pari passu in all respects with the Company's existing ordinary shares.

Following issue of the Placing Shares, the Company's issued share capital will be 99,155,162 ordinary shares. The Placing Shares will represent approximately 33% of the Company's enlarged issued share capital.

The Placing has been conducted amongst new and existing institutional and other investors, including funds managed by Consilium Investment Management, LLC ("Consilium") who prior to the Placing held 9.93% of the issued share capital of the Company. Consilium will increase its percentage interest from 9.93% to 14.69% by subscribing for 7,931,666 new ordinary shares in the Company.

A Director of the Company, namely Edzo Wisman has participated in the Placing subscribing for 2.5% of the offering. Prior to the Placing the Directors held 3.16% of the issued share capital of the Company. Following the Placing the Directors percentage holding will decrease from 3.16% to 2.95% as a result of subscribing for 813,455 new ordinary shares in the Company.

The Company's nominated adviser and joint broker, WH Ireland, has subscribed for 1,000,000 new ordinary shares. Peterhouse Corporate Finance, joint broker to the Compamy, has subscribed for 302,000 new ordinary shares.

For the purposes of the AIM Rules for Companies, the participation of the Directors and Consilium is a related party transaction.

Having consulted with WH Ireland, the nominated advisor to the Company, the independent non-executive directors of the Company, being Paul Turner, Fred Jones and Itai Mazaiwana who are neither participating in the placement nor represent Consilium, consider the terms of the Placing to be fair and reasonable in so far as all the shareholders of the Company are concerned.

About Cambria Africa Plc

Cambria Africa Plc, quoted on the AIM market of the London Stock Exchange, is a long term, active investment company, building a portfolio of investments primarily in Southern Africa.