Debt Repayment Terms and Corporate Update

Woodbois Limited

06 June 2023

 

6 June 2023  

Woodbois Limited  

("Woodbois", "the Company") 

Debt Repayment Terms and Corporate Update

On 19 April 2023 the Company announced the unexpected termination of its c$6.0m line of credit with Sydbank A/S (the "Bank") and the subsequent offsetting by the Bank of c$3.1m of cash, being substantially all of the Company's cash balances.

The Company has now reached an agreement with the Bank under which the outstanding balance of c.$2.8m will be repaid by no later than 29 December 2023. The Company has undertaken to repay approximately $145k on each of 15 June and 30 June 2023. A further $145k is to be paid in the middle of each subsequent month with any additional lump sums being paid to ensure repayment of the total outstanding balance and interest by the final repayment date. There are also financial incentives in place if the Group settles the outstanding balance earlier in the year.  Existing security arrangements, per the original loan facility agreement, will remain in place until the line of credit is fully settled.

Since the termination notice from the Bank, the Company has had to operate with an emphasis on cash realisation and limiting new liabilities. As of today, the Company's cash balance is approximately $0.4m, its other working capital is estimated at $5.1m and bank and other debt totalling $11.4m.

Following the termination notice, the Company continues to assess alternative funding sources and will update the market in due course once any such agreement has been reached. The Company is also working on the potential deferment of c.$1.5m of debts, which fall due at the end of June. Whilst the Directors are confident that the Company will obtain alternative funding in the coming weeks, should they fail to do so, the Company may be reliant on the deferment of these near-term creditors in order to continue to trade. 

The Company expects to announce its annual results for the year to 31 December 2022 within the next week.

The Company also urges shareholders to vote in favour of all resolutions set out in the circular dated 26 May 2023, which are to be considered at the General Meeting to be held on 16 June 2023. The passing of these resolutions will provide the Company with important flexibility to issue ordinary shares quickly, if it is considered to be in the best interests of stakeholders.

Enquiries

Woodbois Limited Paul Dolan, CEO Carnel Geddes, CFO	[phone]
Canaccord Genuity, Nominated Adviser Henry Fitzgerald O'Connor, Harry Pardoe, Gordon Hamilton	[phone]

Market Abuse Regulation

The information contained within this announcement would have, prior to its release, constituted inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No.596/2014 as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019 ("UK MAR"). Upon the publication of this announcement via a regulatory information service, this inside information will be considered to be in the public domain. For the purposes of UK MAR, the person responsible for arranging for the release of this information on behalf of the Company is Carnel Geddes.

 

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