NSMS Acquisition Update

RNS Number : 3183J

Obtala Limited

29 March 2018

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.

29 March 2018

Obtala Limited

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

(AIM: OBT)

NSMS Acquisition Update

Further to the announcement of 30^th January 2018, Obtala Limited (AIM: OBT), the African focused agricultural and forestry company, announces that it has agreed with Nouvelle Scierie Moderne de Sassandra ("NSMS") and Mr Sidani Yahia Younes to extend the time period for serving notice to acquire 100% of the share capital of NSMS as described in the original announcement dated 30^th January 2018 by 12 months to 1^st April 2019.

Under the terms of  the original announcement, Obtala, through Argento, has provided a CFA450m ($845k) loan to NSMS to pre-finance the production of timber in the Ivory Coast, repayable over 9 months from 31 March 2018, in return for exclusivity over this production. Under the extended agreement, at any time up to 1^st April 2019, Obtala can serve written notice via Argento to purchase 100% of NSMS' share capital. Should the acquisition not be pursued, the loan becomes repayable in full.

Chairman of Obtala, Miles Pelham, commented, "Deliveries from NSMS have commenced but our due diligence process requires more sample data before exercising or terminating our option to purchase 100% of NSMS share capital.  We are therefore delighted to have agreed the extension, for no additional consideration, and look forward to working with NSMS on the development on an integrated supply chain for their product throughout 2018."

Obtala Limited Miles Pelham - Chairman Paul Dolan - CEO Martin Collins - Deputy Chairman www.obtala.com	[phone]
Northland Capital Partners Ltd (Nomad and Joint Broker) Tom Price Jamie Spotswood	[phone]
Brandon Hill Capital (Joint Broker) Jonathan Evans	[phone]

 

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