Issue of Equity and Total Voting Rights

RNS Number : 6278C

Agriterra Ltd

18 April 2013

 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

18 April 2013

Agriterra Ltd ('Agriterra' or 'the Company')

Issue of Equity and Total Voting Rights

Agriterra Ltd, the AIM listed pan-African agricultural company, announces that pursuant to the agreement announced on 17 January 2013 regarding the acquisition of further 2,500 hectares of farmland (the 'Acquisition') to expand the Company's cattle ranching operations in Mozambique, the Company is issuing 2,102,240 new ordinary shares of 0.1p each in the Company ('Ordinary Shares') as partial consideration.

The Acquisition is in line with the Company's strategy to expand its beef herd, which currently stands at 6,213 across the 2,350 hectare Mavonde Stud Ranch and the 15,000 hectare Dombe Ranch.  The newly acquired farm, known as the Irmaos Ranch, will further diversify the Company's agricultural product range as it comprises a producing banana plantation and macadamia orchard, in addition to the land capacity for cattle.  The Irmaos Ranch is located approximately 25km north of the Company's Mavonde Stud Ranch and is irrigated by the bordering Nyadzonya River.

Under the terms of the Acquisition, 2,102,240 new Ordinary Shares ('the Consideration Shares') will be issued (calculated using the prevailing US$/GB£ exchange rate as at 31 January 2013, the effective date of the Acquisition).  Application has been made to the London Stock Exchange for the Consideration Shares to be admitted to trading on AIM ('Admission') and it is expected that Admission will occur, and dealings in the Consideration Shares will commence, on 23 April 2013.

The Consideration Shares will, when issued, rank pari passu in all respects with the existing issued ordinary shares of Agriterra, including the right to receive any dividends and other distributions declared following Admission. 

Following Admission, the Consideration Shares will represent 0.198% of the enlarged issued ordinary share capital, which will then comprise 1,061,818,478 Ordinary Shares, with each Ordinary Share carrying the right to cast one vote.

The number of Ordinary Shares quoted above may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

** ENDS **

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves	Agriterra Ltd		Tel: [phone]
David Foreman	Cantor Fitzgerald Europe		Tel: [phone]
Rick Thompson	Cantor Fitzgerald Europe		Tel: [phone]
Andy Cuthill	MC Peat & Co LLP		Tel: [phone]
Susie Geliher	St Brides Media & Finance Ltd		Tel: [phone]

Notes

Agriterra Ltd is an AIM listed agricultural company with five divisions: beef, maize, cocoa, fruit and palm oil.  Its cattle ranching business, Mozbife, has a herd in excess of 6,200 head, a land holding of over 21,000 hectares, a feedlot, a 4,000 head per month capacity abattoir and retail units.  In addition to selling meat from its own herds, throughput for the feedlot and abattoir is supplemented with cattle bought in from local communities.  The Company also owns a proximal banana plantation and macadamia orchard.

The Company's maize buying and milling operations, DECA and Compagri, are located in Chimoio and Tete in central and north-western Mozambique respectively.  These collect maize from circa 350,000 farmers using the Company's own vehicle fleet, process it into maize meal, the African staple, and then sell it back to the local market, into supermarkets and to the World Food Programme.

Agriterra's cocoa business is based in Sierra Leone, through its 100% subsidiary Tropical Farms Limited, which includes buying, trading and production operations.  The Company holds over 1,200 hectares of land for cocoa cultivation and also has a strong buying register with three main hub stores, 41 satellite stores and a direct buying register of more than 3,500 farmers across the country.  Its strategy is to establish itself as a secure, sustainable and traceable source of supply to meet the requirements of the major cocoa consumers who are placing increased emphasis in this area. 

 

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