Investment

RNS Number : 5045V
AIM Investments PLC
02 November 2010
 



2 November 2010

AIM Investments Plc

(the "Company")

Investment in Planteman S.A.

and

Increase in Desmond Holdings Limited Loan Facility

The Company is pleased to announce it has entered into a convertible loan agreement of up to US$700,000 with Planteman S.A. ("Planteman"), a Uruguayan agricultural company, in order to fund all expenses connected with Planteman's (or its newly formed holding company's) proposed admission to the Official List and to trading on the Main Market of the London Stock Exchange as a Standard Listing. The loan is convertible, at the Company's discretion, into equity of Planteman (or its new holding company) at a 50% discount to the issue price for the Main Market listing. The Company has already transferred $600,000 to an escrow account.

 

Planteman, through its associated entities, currently owns and manages farm and forestry land in Uruguay, and manages property for other landowners. Its growth plan includes the acquisition for shares of 13,000 hectares of prime agricultural land in Uruguay.

 

AIMI's $600,000 cash investment will convert to shares with the value of $1,200,000 (based on the listing price). The shareholding will represent approximately 1% of Planteman's total issued share capital prior to a planned substantial capital raise concurrent with the public listing. The admission is anticipated to take place in the first quarter of 2011; however, there can be no assurance that the admission will occur at that time or at all.

 

To fund its $600,000 investment in Planteman, the Company has drawn down a like amount under the Loan Facility from Desmond Holdings Limited ("DHL") details of which were announced on 13 and 27 October 2010. The Loan Facility has since been increased from £500,000 to £700,000.

 

The investment in Planteman is in line with the Company's Investing Policy to fund the listing costs of companies, particularly from the emerging Asian and Latin American areas, in return for discounted equity in the companies. Planteman is the second such investment. The Company is currently pursuing a number of other similar investments, details of which it expects to announce shortly.

 

For further information please contact:

AIM Investments Plc

Alexandra Eavis

08702 701 111

Astaire Securities plc (Nominated Adviser and Broker)

Gavin Burnell, Edward Hutton

020 7492 4750

www.aiminvestmentsplc.com

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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