Board Change, Strategic Initiatives & Joint Broker

Woodbois Limited

29 December 2023

 

29th December 2023

Woodbois Limited

("Woodbois", the "Group" or the "Company")

(AIM: WBI)

Executive Chair appointed

Strategic initiatives & operations

Joint broker

Woodbois Limited (AIM: WBI), the Africa-focused forestry, timber trading, afforestation and voluntary carbon credit company is pleased to announce the following changes to enhance its future development.

Executive Chair

As a result of the organisational review previously announced it has become clear that the Company needs a full-time Executive Chair if it is to achieve the demanding plans it is developing. Guido Theuns, who was appointed to the Board on 4 December 2023, has been invited and has accepted this role with immediate effect. He has extensive African and financial reorganisation experience.

Guido said "There is much work to be done to ensure the value inherent within Woodbois' assets is fully realised. I have been impressed by the team and its spirit, as well as their determination to make the Company a great success. I am confident in our ability to secure new resources as required, including strengthening where required, and look forward to substantial  progress in 2024."

Graeme Thomson, outgoing Chair, will reduce the time he devotes to the Company owing to his expanding other interests but has agreed to remain as Senior Independent Non-Executive Director.

Strategic initiatives

Investors rightfully seek an attractive return on their investments, accompanied by regular updates that offer transparent insights into the Company's operations and plans. The Company is steadfastly dedicated to enhancing its shareholder communication provided with consistent and informative updates.

To enhance and realise the shareholder value inherrent in its assets and objectives, Woodbois is undertaking four simultaneous strategic initiatives:

1.         Cost Streamlining: It will rigorously evaluate and optimise costs where possible and necessary, including a comprehensive review of its international legal structure.

2.         Production Optimisation: Maximizing wood production and yields is paramount. It is implementing new team leadership, enhancing production teams, and increasing shifts. This strategic move will not only enhance efficiency but also instill pride in being a part of Woodbois. Leveraging technologies such as StarLink connections will ensure faster and transparent reporting.

3.         Trading Team Expansion: Woodbois is focused on expanding its trading team, coupled with shortly finalising a $3.5 million trade finance facility¹. This strategic step empowers our team to trade beyond Woodbois' production volume, significantly contributing to Company profitability.

4.         Carbon Credits Business Plan: Following our engagement with stakeholders at COP28 in Dubai, Woodbois is diligently working on a comprehensive business plan for Carbon Credits, with its project in Gabon being its first. This initiative holds the potential to become a lucrative addition to our diversified business portfolio.

Woodbois finds itself at a pivotal juncture, and with confidence in its capable management team and dedicated employees, the Board are optimistic that it can effect positive change.

Our overarching goal is to reposition Woodbois as an attractive investment-a company known for its excellence, reliability, cash generation and profitability.

Operational Summary

·    Conditional $3.5m line of credit agreed to permit third party trading operations to restart¹

·    Further governmental negotiations re lease concession agreement for carbon credit project expected to be concluded in H1 2024: plan to conclude, secure project specific funding and commence pilot study

·    Negotiations on-going to enhance operational and financial flexibility

·    Excellent progress on clearing a restrictive backlog of repairs, maintenance and creditors

·    Estimated 2023 turnover of c$8 million reflects previously announced events

·    Estimated H2 sawmill production of c.3,200 m3 and 2023 full year production of c6,900 m3

·    Veneer paused throughout H2 to initially focus on sawmill operations: 2023 full year production c1,900 m3

·    Confidence in the outlook for 2024 compared with 2023.

·    A full Q4/2023 update and outlook will be released in late January 2024.

The Board firmly believe that 2024 will mark a positive and decisive turning point for Woodbois.

Appointment of Axis Capital Markets as Joint Broker

The Company has also been increasingly aware of the need for a further proactive broker to assist in marketing and promoting it as it develops and is pleased to appoint Axis Capital Markets as Joint Broker from today alongside Canaccord Genuity and Novum Securities.

¹ a $3.5m line of credit for trading has been agreed, subject to final documentation expected in January 2024

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Enquiries:

Woodbois Limited Guido Theuns, Independent Executive Chair David Rothschild, CEO Graeme Thomson, Independent Non-Executive Director	+ 44 (0)20 7099 1940
Canaccord Genuity (Nominated Advisor and Broker) Henry Fitzgerald-O'Connor Harry Pardoe	+ 44 (0)20 7523 8000
Novum Securities (Joint Broker) Colin Rowbury, Jon Bellis	[phone]
Axis Capital Markets Limited (Joint Broker) Ben Tadd, Lewis Jones	[phone]

Background on Woodbois

Woodbois Limited (AIM:WBI) is an Africa-focused forestry company, divided into three distinct, but highly complementary divisions comprising the production and supply of sustainable African hardwood products, the trading of timber and timber products, and an afforestation and carbon credit division.

Woodbois' forestry division has production facilities in Gabon and Mozambique, managing a total of c480,000 hectares of natural forest concessions. The trading division comprises an experienced team of timber specialists, who source and supply sustainable timber to a global customer base. Its proprietary technology developed in-house, captures, stores and presents data, providing a matching engine to build scale and optimise trading opportunities with its global customer base.

The Company's carbon sequestration and trading division aims to generate voluntary carbon credits for corporate partners through the delivery of large-scale afforestation projects. It has been allocated land of c69,000 hectares in Gabon, its first such project.

The Company's focus on the transparency and sustainability of its timber operations has been recognised by The Zoological Society of London, which ranked Woodbois joint eighth in its Sustainability Policy Transparency Toolkit ('SPOTT'') ESG policy transparency assessments for the worldwide timber and pulp industries for 2022.

The Company has a partnership with World Forest ID, to enhance the traceability and identification of timber, originating from the Company's forest concessions, firstly in Gabon. World Forest ID is an international organisation, which is revolutionizing the protection of forests through the application of science-based origin tracing and species identification. World Forest ID is building an extensive global library of reference samples, from various forest regions, for use in cross verification.

Please follow the Company on Twitter: @WoodboisLtd

 

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