Issue of Equity

RNS Number : 0614X

Obtala Limited

16 February 2017

 

Obtala Limited

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

(AIM: OBT)

Issue of Equity

Obtala Limited, the African focused agricultural and forestry company, announces its intention to issue 4,377,104 ordinary shares of 1p each in the Company following receipt of a notice to exercise warrants at a price of 18.56p per share being the subscription price of the warrants as announced on 20^th February 2013.  Weiss Asset Management will now have until 21^st February 2017 to pay a total of GBP812,390.50 to the Company.

Application will made for the 4,377,104 new Obtala ordinary shares, which will rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. It is expected that admission will become effective on or around 22^nd February 2017. The enlarged issued share capital of the Company with voting rights attached will, following the issue, consist of 277,637,768 Ordinary Shares of 1p each with one vote per share. There are no Ordinary Shares held in Treasury. Therefore the total number of voting rights in the Company will be 277,637,768. This figure may be used by shareholders (and others with notification requirements) as the denominator for the calculations by which they will determine whether they are required to notify their interest, or a change to their interest, in the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules or otherwise.

This warrant exercise leaves one lot of outstanding warrants in existence, as announced 28^th Nov 2012 with the following terms:

Amount                               Strike                    Expiry

20,000,000                           40p                         28^th Nov 2017

Miles Pelham, Chairman of Obtala, commented "This is a welcome and unexpected cash injection for the Company as we fine tune our capital expenditure plans.  Selected investment has been made and we expect to update investors on detailed timelines of production capacity expansion in our next quarterly update.

Harvesting and shipping of crops is still occurring in Morogoro, Tanzania and the Forestry division is busily preparing for the resumption of the cutting season on 1^st April.

Due diligence processes are still on-going with the large Asian based investor regarding investment into Argento Preference share announced in December but were delayed by Chinese New Year holidays.  We expect this process to be concluded in the near future."

Obtala Limited Miles Pelham - Chairman Paul Dolan - CEO www.obtala.com	[phone]
ZAI Corporate Finance Limited (Nomad) Ray Zimmerman/ Peter Trevelyan-Clark / John Treacy	[phone]
Brandon Hill Capital  (Broker)  Jonathan Evans	[phone]

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No. 596/2014. 

 

END

 

 

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