Proactiveinvestors United Kingdom Woodbois Limited https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Woodbois Limited RSS feed en Fri, 19 Jul 2019 07:02:36 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Woodbois jumps as first-half revenues soar after record second quarter ]]> https://www.proactiveinvestors.co.uk/companies/news/223756/woodbois-jumps-as-first-half-revenues-soar-after-record-second-quarter-223756.html Shares in Woodbois Limited (LON:WBI) jumped on Thursday afternoon after a record second quarter helped the Africa-focused forestry and timber trading group post a sharp rise in first-half revenues.

The company, which manages 1mln acres of natural forest concessions in Gabon and Mozambique, racked up revenue of US$4.7mln in the three months ended 30 June.

That allowed the top-line to climb 39% in the first half to US$9.2mln (H1 18: US$6.6mln).

READ: Woodbois expects growth to accelerate in 2019

Woodbois said it was the trading business – which sources wood products and sells them across the globe – that drove the growth, more than offsetting a couple of weaker months for its own forestry operations.

The company was unable to ship any timber from Gabon during May and June after a Chinese company operating in the country was found to be illegally shipping kevazingo logs.

In the same announcement, Woodbois confirmed chairman Miles Pelham has stepped down with immediate effect in order to focus on his blockchain company.

Kevin Milne has been appointed to his role on an interim basis while a search for Pelham’s permanent successor is carried out.

Woodbois also revealed it is yet to receive any payment for its agriculture business in Tanzania, which it sold off earlier in the year.

“We are currently in discussions with Envision to restructure the payment schedule,” the company said. “The group has no ongoing cost commitment in Tanzania.”

Shares were up 4.2% to 6.25p on Thursday afternoon.

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Thu, 11 Jul 2019 13:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/223756/woodbois-jumps-as-first-half-revenues-soar-after-record-second-quarter-223756.html
<![CDATA[RNS press release - Quarterly Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190711122037_14145323/ Thu, 11 Jul 2019 12:20:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190711122037_14145323/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190619115800_14116930/ Wed, 19 Jun 2019 11:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190619115800_14116930/ <![CDATA[News - Woodbois expects growth to accelerate in 2019 ]]> https://www.proactiveinvestors.co.uk/companies/news/222354/woodbois-expects-growth-to-accelerate-in-2019-222354.html  

What it does

Woodbois Limited (LON:WBI) is an Africa-focused forestry and timber trading company.

It is involved in the production, processing, manufacture and supply of sustainable African hardwood (i.e. beech and blackwood) and hardwood products.

The AIM company manages and operates around 1mln acres of natural forest concessions in Gabon and Mozambique, where it also has manufacturing facilities.

Its products are transported all around the world, and used for things such as boat building.

As well as harvesting and producing its own products, Woodbois also sources softwood (pine and redwood) and hardwood products and sells them across the globe.

 

Change of name reflects change in focus

Formerly known as Obtala, the company sold off its agriculture business in Tanzania earlier this year.

That was part of a move to double-down on the timber trading and production arm of the business, which bosses thought would help attract new investors and trade finance partners.

That turned out to be the case, with 1798 Volantis Fund, Lombard Odier Asset Management’s small cap team, subscribing for US$6.5mln (£5mln) worth of shares and committed to providing a US$5mln loan.

Lombard Odier is now the company’s largest single shareholder with a 25% stake.

 

How it’s doing

Woodbois kicked off 2019 with a record quarter, shipping an all-time quarterly high of 114 containers of timber and veneer during the three months ended 31 March.

That translated into record revenue of US$4.5mln for the period, a third higher than the same quarter of 2018 (Q1 18: US$3.4mln).

Shortly after it reported the record first quarter, Woodbois released its results for 2018 which showed a huge jump in revenue and underlying profits.

Revenues jumped to US$13.4mln from US$7.9mln, while gross profits had also increased to US$2.1mln from US$453,000 in 2017.

The group also reported pre-tax losses of US$5.6mln for 2018, smaller than the US$7.3mln loss the year before.

 

Blue sky

Growth is expected to pick up further as the year progresses, with new kilns scheduled to be installed in Gabon in the third quarter, closely followed by a new line of sawmilling equipment which should become operational before year end.

The new kilns will boost annual profits by US$700,000 as Woodbois won’t have to outsource this to third parties, while the new sawmill increases production and enhances recovery levels.

The recent investment from Lombard Odier, as well as US$10mln worth of trade loans secured since the beginning of the year, should also allow for bosses to add “significant scale” to the business in 2019.

 

What the boss is saying

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Mon, 17 Jun 2019 15:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222354/woodbois-expects-growth-to-accelerate-in-2019-222354.html
<![CDATA[RNS press release - Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190523070010_14084412/ Thu, 23 May 2019 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190523070010_14084412/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190521070024_14080985/ Tue, 21 May 2019 07:00:24 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190521070024_14080985/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190520070022_14079336/ Mon, 20 May 2019 07:00:22 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190520070022_14079336/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190517103635_14078403/ Fri, 17 May 2019 10:36:35 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190517103635_14078403/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190516151822_14077279/ Thu, 16 May 2019 15:18:22 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190516151822_14077279/ <![CDATA[Media files - Woodbois Limited targets further growth as revenues and gross profit increase ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13320/woodbois-limited-targets-further-growth-as-revenues-and-gross-profit-increase-13320.html Mon, 13 May 2019 15:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13320/woodbois-limited-targets-further-growth-as-revenues-and-gross-profit-increase-13320.html <![CDATA[News - Woodbois surges as it chops down losses in 2018 ]]> https://www.proactiveinvestors.co.uk/companies/news/220153/woodbois-surges-as-it-chops-down-losses-in-2018-220153.html Woodbois Limited (LON:WBI) shares surged on Monday after it cut losses in its latest full year and aimed to add “significant scale” to its business in 2019.

The group, which was previously known as Obtala, reported pre-tax losses of US$5.6mln for 2018, smaller than the US$7.3mln loss the year before, while revenues jumped to US$13.4mln from US$7.9mln. Gross profits had also increased to US$2.1mln from US$453,000 in 2017.

READ: Woodbois shares rise as it enjoys record first quarter

The results follow a period of restructuring and rebranding for the firm, which opted to change its name from Obtala after selling its agricultural assets in Tanzania for around US$2.5mln in order to focus on its timber businesses.

Looking ahead, Woodbois’ chairman Miles Pelham said the company had secured US$10mln in trade finance loans since the start of 2019, which represented a “major milestone” for the firm and would allow its trading team to add “significant scale” to their business over the coming year.

“In line with the rapid growth of urban populations across Sub-Saharan Africa, we will seek to develop our intra-African trading and supply chains, as well as expanding the established Woodbois business of supplying sustainable African hardwood and hardwood products to clients around the globe”, Pelham added.

The company has also begun the new fiscal year on a solid financial footing, having previously reported a record first quarter in the first three months of 2019.

The bullish outlook gave renewed strength to the shares, which were up 11.6% at 7p in late-afternoon trading.

In a separate announcement, the company also said it had appointed Henry Turcan to the board as a non-executive director and representative of the group’s largest shareholder, Lombard Odier Investments.

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Mon, 13 May 2019 14:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220153/woodbois-surges-as-it-chops-down-losses-in-2018-220153.html
<![CDATA[RNS press release - Appointment of Non-Executive Director ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190513070103_14070746/ Mon, 13 May 2019 07:01:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190513070103_14070746/ <![CDATA[RNS press release - Final Results FY18 ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190513070005_14070656/ Mon, 13 May 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190513070005_14070656/ <![CDATA[News - Woodbois shares rise as it enjoys record first quarter ]]> https://www.proactiveinvestors.co.uk/companies/news/217743/woodbois-shares-rise-as-it-enjoys-record-first-quarter-217743.html Woodbois Limited (LON:WBI) kicked off 2019 with a record quarter.

The Africa-focused forestry and timber trading company shipped an all-time quarterly high of 114 containers of timber and veneer during the three months ended 31 March.

That translated into record revenue of US$4.5mln for the period, a third higher than the same quarter of 2018 (Q1 18: US$3.4mln).

READ: Woodbois raises £960k from Lombard Odier subscription

Growth is expected to pick up further as the year progresses, with new kilns scheduled to be installed in Gabon in the third quarter, closely followed by a new line of sawmilling equipment which should become operational before year end.

The new kilns will boost annual profits by US$700,000 as Woodbois won’t have to outsource this to third parties, while the new sawmill increases production and enhances recovery levels.

Away from operations, it has been a busy few months for the company, which sold off its agriculture business in Tanzania and acquired the remaining 25% stake in Montara Continental.

That was part of a move to double-down on the timber trading and production arm of the business, which bosses thought would help attract new investors and trade finance partners.

New investment

That turned out to be the case, with 1798 Volantis Fund, Lombard Odier Asset Management’s small cap team, which subscribed for US$6.5mln (£5mln) worth of shares and committed to providing a US$5mln loan.

“This is the first quarterly report to be delivered under the Woodbois banner and with great strides already made in 2019, it is one that I've greatly looked forward to issuing,” said chief executive Paul Dolan.

“Having bought out minority interests and restructured and completed the sale of our agriculture business in Tanzania, your management team now has the comparative luxury of focussing exclusively on the development of market-leading timber production and trading businesses.

Shares were up 2.1% to 7.14p in early deals on Tuesday.

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Tue, 02 Apr 2019 09:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217743/woodbois-shares-rise-as-it-enjoys-record-first-quarter-217743.html
<![CDATA[RNS press release - Quarterly Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190402070016_14024544/ Tue, 02 Apr 2019 07:00:16 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190402070016_14024544/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190401131258_14023799/ Mon, 01 Apr 2019 13:12:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190401131258_14023799/ <![CDATA[News - Woodbois raises £960,000 from Lombard Odier subscription as it amends agreement to sell Tanzanian agricultural business ]]> https://www.proactiveinvestors.co.uk/companies/news/217311/woodbois-raises-960000-from-lombard-odier-subscription-as-it-amends-agreement-to-sell-tanzanian-agricultural-business-217311.html Woodbois Limited (LON:WBI), formerly known as Obtala, has raised around £960,000 from its institutional investor, Lombard Odier, as it also amended an agreement relating to the sale of its Tanzanian agricultural business.

The forestry and timber firm said Lombard had subscribed for 16mln new shares at a price of 6p each, an 12% discount to its close price on Tuesday, taking its stake in Woodbois to 25.01%.

READ: Obtala raises £2mln from Lombard Odier to beef up Gabon facilities

The funds would be allocated towards the group’s plan to buy the 25% stake of its subsidiary Montara Continental Limited that is currently owned by partner firm Africa Resource Investment Ltd (ARI), which once completed will take its ownership to 100%.

ARI is solely owned by Patrick Green who was an employee of Obtala between June 2011 and September 2018. He was most recently the company’s head of forestry for Mozambique.

Amended deal to sell agricultural business

Woodbois also said that it had amended a deal to sell its Tanzanian agricultural business to its partner Envision Consulting (T) Limited.

Under the new agreement, Woodbois had adjusted the purchase price due to US$2,015,097.62 in return for Envision taking on an intercompany loan of US$484,902.38 upon acquiring the business.

This would leave the aggregate amount payable to US$2.5mln, which was initially agreed, with the first instalment of US$250,000 due on 30 April 2019.

READ: Obtala reveals new financing and restructuring deals as it focuses on timber

Paul Dolan, Woodbois chief executive, said the agreements marked “yet another significant milestone in the comprehensive restructuring of the group organisation”.

“With a streamlined structure, a much-strengthened balance sheet and the ability to focus squarely on core activities in which we not only intend to compete profitably, but to excel, I am confident that the Group will deliver growth in 2019 and consistently into the next decade."

Woodbois had initially revealed the restructuring plans in January as part of a strategy to focus on the expansion of its timber operations, particularly in West Africa.

In early trading Wednesday, Woodbois shares were down 1.5% at 6.75p.

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Wed, 27 Mar 2019 09:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217311/woodbois-raises-960000-from-lombard-odier-subscription-as-it-amends-agreement-to-sell-tanzanian-agricultural-business-217311.html
<![CDATA[RNS press release - Equity Raise and Group Restructuring Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190327070004_14016889/ Wed, 27 Mar 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190327070004_14016889/ <![CDATA[RNS press release - Results of General Meeting and Change of Name ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190320132003_14009487/ Wed, 20 Mar 2019 13:20:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190320132003_14009487/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190314173206_14003058/ Thu, 14 Mar 2019 17:32:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190314173206_14003058/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190313132525_14001042/ Wed, 13 Mar 2019 13:25:25 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190313132525_14001042/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190311070012_13996492/ Mon, 11 Mar 2019 07:00:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190311070012_13996492/ <![CDATA[News - Obtala raises £2mln from Lombard Odier to beef up Gabon facilities ]]> https://www.proactiveinvestors.co.uk/companies/news/215988/obtala-raises-2mln-from-lombard-odier-to-beef-up-gabon-facilities-215988.html Existing institutional investor Lombard Odier Asset Management is to inject a further £2mln into forestry and timber trader Obtala Limited (LON:OBT).

Proceeds are earmarked for immediate capex at its facilities in Gabon including upgrading 2 heavy-duty vertical bandsaws in the sawmill and the installation of a plywood manufacturing line within the veneer factory.

READ: Obtala expects positive trend seen in 2018 to accelerate this year as it overhauls business

Paul Dolan, chief executive, said the investment in two new bandsaws would improve recovery rates by up to 20%, with an expected corresponding impact on gross profit margins.

The installation will take place in the third quarter of 2019.

The plywood line will also boost margins he said as composite veneer sheets can be created and incorporated within plywood boards from the material that is currently sold at a discount to standard sized veneer sheets.

“Serving the fast-growing market for construction plywood in Africa is a natural extension to our business,” said Dolan.

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Thu, 07 Mar 2019 08:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215988/obtala-raises-2mln-from-lombard-odier-to-beef-up-gabon-facilities-215988.html
<![CDATA[RNS press release - Equity Raise ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190307070007_13993121/ Thu, 07 Mar 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190307070007_13993121/ <![CDATA[RNS press release - Notice of General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190228070029_13984488/ Thu, 28 Feb 2019 07:00:29 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190228070029_13984488/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190131154704_13954136/ Thu, 31 Jan 2019 15:47:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190131154704_13954136/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190121070103_13940505/ Mon, 21 Jan 2019 07:01:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190121070103_13940505/ <![CDATA[RNS press release - Long Term Incentive Plan ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190121070007_13940446/ Mon, 21 Jan 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190121070007_13940446/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190116134428_13936981/ Wed, 16 Jan 2019 13:44:28 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190116134428_13936981/ <![CDATA[Media files - Obtala Ltd 'kicking goals' and has the nuts and bolts in place for 2019 ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11825/obtala-ltd--kicking-goals--and-has-the-nuts-and-bolts-in-place-for-2019-11825.html Mon, 14 Jan 2019 09:54:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11825/obtala-ltd--kicking-goals--and-has-the-nuts-and-bolts-in-place-for-2019-11825.html <![CDATA[News - Obtala expects growth in the top-line to accelerate in 2019 ]]> https://www.proactiveinvestors.co.uk/companies/news/212479/obtala-expects-growth-in-the-top-line-to-accelerate-in-2019-212479.html Obtala Limited (LON:OBT), the Africa-focused forestry and timber group, saw a sharp increase in revenue in the fourth quarter of 2018.

Revenue in the final quarter of last year rose to US$3.7mln from U$$3.2mln in the preceding quarter, taking the total for the whole year to US$13.5mln, up from US$8.4mln the year before.

The group recently completed a strategic review of the loss-making parts of the business to focus on forestry and timber, and the focus in the final quarter of last year was on increasing output from its profitable assets in West Africa, reducing costs, attracting additional trade finance funding, and improving margins by leveraging its fixed cost base to reduce the cost of production.

READ: Obtala to spin out agriculture arm and change name to WoodBois as it doubles down on timber

"The positive transition within the operating business during 2018 has resulted in a further upward rebasing of revenues, a trend we expect to accelerate into 2019,” said Paul Dolan, the chief executive officer of Obtala.

“The efforts made to generate this result have been mirrored by intensive management focus on cost reduction, streamlining of the corporate structure, strengthening the balance sheet and creating a board with the strongest possible credentials within our chosen sphere of competition. I look forward to communicating further progress on all of these fronts during 2019," he added.

Shares in Obtala were up 0.7% at 7.1p in early deals.

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Mon, 14 Jan 2019 08:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212479/obtala-expects-growth-in-the-top-line-to-accelerate-in-2019-212479.html
<![CDATA[RNS press release - Quarterly Update - Replacement ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190114080800_13933265/ Mon, 14 Jan 2019 08:08:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190114080800_13933265/ <![CDATA[RNS press release - Quarterly Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190114070005_13932733/ Mon, 14 Jan 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190114070005_13932733/ <![CDATA[RNS press release - Appointment of New Nominated Adviser and Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190111070004_13931237/ Fri, 11 Jan 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190111070004_13931237/ <![CDATA[News - Obtala reveals new financing and restructuring deals as it focuses on timber ]]> https://www.proactiveinvestors.co.uk/companies/news/212297/obtala-reveals-new-financing-and-restructuring-deals-as-it-focuses-on-timber-212297.html Obtala Ltd (LON:OBT) has announced today a series of deals that it expects to positively impact the forestry company’s balance sheet and underlying business structure.

It has agreed to sell its Tanzanian agricultural business for US$2.5mln, it is to receive £7mln of investments from a fund managed by Lombard Odier Asset Management, and, it is to take full ownership of its currently 75%-owned Montara Continental subsidiary.

READ: Obtala to spin out agriculture arm

"Today's announcement represents the culmination of hard work and negotiation over many months with the net result being the evolution of a dedicated and focussed timber production and trading business with a simplified corporate structure,” said Miles Pelham, Obtala chairman.

“In addition, we welcome a significant investment from Volantis and up to US$10mln cash flowing into our trade finance vehicle, which should significantly increase the profitability of the trading division.”

Pelham added: “We believe these developments have the potential to be transformational for Obtala and provide the Group with the strongest possible start to 2019.”

Agriculture sale

The deal to sell the agricultural business to the company’s local Tanzanian partner Envision Consulting will see Obtala initially receive US$250,000 as a deposit, with the balance of the consideration (US$2.25mln) due for payment by the end of March.

Envision will immediately be responsible for all operating costs.

The business unit had an unaudited book value of US$2.1mln as at 31 December 2018 (down from US$2.66mln at the end of June 2018) and the unit showed an unaudited US$1.2mln loss at the end of 2018.  Obtala had provided some US$8mln of loans to the Tanzanian subsidiaries over the prior six years.

Obtala said the transaction is consistent with its strategy to focus on the expansion of the timber operations, particularly in West Africa.

The new injection of funding

The 1798 Volantis Fund Ltd, discretionary managed by Lombard Odier Asset Management, is investing some £2mln through the purchase of Obtala shares – 40mln shares priced at 5p each, a 12% discount to Wednesday’s closing price.

It will subsequently see Volantis own around 12% of the company’s shares.

Volantis will concurrently inject some US$5mln as a loan, secured against trade receivables and qualifying timber inventory. Interest will be at 11.5% per year, paid semi-annually.

The investor will also receive 40mln share warrants, allowing it to acquire 40mln additional new shares at an exercise price of 10p each – 50% of the warrants are exercisable between the loan’s first and third anniversary, while the remainder can be exercised at any time so long as Volantis retains at least 10% of Obtala’s shares.

The loan agreement is set up via an ‘internal trade finance note’ and is between a wholly owned Hong Kong subsidiary of Obtala and Volantis.

Taking full ownership of Montara

Simplifying the ownership structure, Obtala is acquiring the 25% of Montara owned by partner Africa Resource Investment (ARI) for up to US$5mln – US$2.5mln initially, US$2.5mln following the completion of the Tanzania agriculture sale.

ARI is solely owned by Patrick Green who was an employee of Obtala between June 2011 and September 2018. He was most recently the company’s head of forestry for Mozambique.

Obtala noted that ARI is to invest all the cash consideration that it receives for the Montara sale back into the Obtala’s internal trade finance.

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Thu, 10 Jan 2019 08:25:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212297/obtala-reveals-new-financing-and-restructuring-deals-as-it-focuses-on-timber-212297.html
<![CDATA[RNS press release - Group Reorganisation and Fundraising ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190110070007_13929647/ Thu, 10 Jan 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20190110070007_13929647/ <![CDATA[RNS press release - Update re: Nominated Adviser ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181121124933_13875773/ Wed, 21 Nov 2018 12:49:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181121124933_13875773/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181105070006_13854150/ Mon, 05 Nov 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181105070006_13854150/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181102151918_13853732/ Fri, 02 Nov 2018 15:19:18 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181102151918_13853732/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181102151414_13853724/ Fri, 02 Nov 2018 15:14:14 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181102151414_13853724/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181102070003_13852415/ Fri, 02 Nov 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181102070003_13852415/ <![CDATA[RNS press release - Nominated Adviser Status ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181101114338_13851552/ Thu, 01 Nov 2018 11:43:38 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181101114338_13851552/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181101070006_13850492/ Thu, 01 Nov 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181101070006_13850492/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181031070006_13848545/ Wed, 31 Oct 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181031070006_13848545/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181030160237_13848223/ Tue, 30 Oct 2018 16:02:37 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181030160237_13848223/ <![CDATA[RNS press release - Funding Closed ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181030100150_13847490/ Tue, 30 Oct 2018 10:01:50 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181030100150_13847490/ <![CDATA[Media files - Obtala to change name to Woodbois Limited and focus solely on forestry ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11038/obtala-to-change-name-to-woodbois-limited-and-focus-solely-on-forestry-11038.html Tue, 30 Oct 2018 09:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11038/obtala-to-change-name-to-woodbois-limited-and-focus-solely-on-forestry-11038.html <![CDATA[News - Obtala to spin out agriculture arm and change name to WoodBois as it doubles down on timber ]]> https://www.proactiveinvestors.co.uk/companies/news/208105/obtala-to-spin-out-agriculture-arm-and-change-name-to-woodbois-as-it-doubles-down-on-timber-208105.html Obtala Ltd (LON:OBT) is looking at two options for its agriculture business - either seeking a strategic partner or spinning it out - in order to focus on its growing forestry and timber trading divisions.

The AIM-quoted company grows crops such as butternut squash and melons at its farms in Tanzania, while it also sells a range of tinned foods and sauces under its Mama Jo’s brand.

WATCH: Obtala chairman discusses name change and forestry focus

But Obtala said the agriculture side of its operations “simply cannot match the rapid growth potential” of its forestry and timber business, which has accounted for more than 98% of turnover so far this year.

“The board has therefore taken the decision to seek a strategic partner or to fully spin out the agriculture business,” read a statement on Tuesday.

Change of name to WoodBois

To reflect the focus on the forestry division, which supplies forestry products to customers around the world, Obtala is planning to change its name to WoodBois, the company it bought last summer.

“The strength of the WoodBois brand has become increasingly apparent to the board since making the acquisition fifteen months ago,” said Obtala.

“With our strategy now specifically focused on building a best in class forestry and timber trading platform, the decision to rename the group under the banner of the stronger and more recognised of our two brands is obvious.”

WoodBois’ principals Hadi Ghossein, Zahid Abbas and Jacob Hansen will join the main Obtala board, while Martin Collins will step down, having fulfilled his job of overseeing the firm’s transition from legacy activities to the now streamlined forestry and timber trading operations.

£2.7mln placing

To help grow the business further, Obtala is raising £2.7mln by selling new shares at 5.5p apiece – slightly below Monday’s closing price of 5.9p.

Chairman Miles Pelham and chief executive Paul Dolan are putting a combined £180,000 of their own money into the placing.

“It is clear from all the negotiations we have had to date, that the preference for trade finance providers is to provide a factoring service against receivables,” said CEO Dolan.

After being down early on, Obtala shares jumped 8.5% on Tuesday afternoon to 6.4p.

--Updates for share price and video link--

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Tue, 30 Oct 2018 09:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208105/obtala-to-spin-out-agriculture-arm-and-change-name-to-woodbois-as-it-doubles-down-on-timber-208105.html
<![CDATA[RNS press release - Capital raise, board, name change,strategic update ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181030080122_13847257/ Tue, 30 Oct 2018 08:01:22 +0000 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181030080122_13847257/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181022101953_13837277/ Mon, 22 Oct 2018 10:19:53 +0100 https://www.proactiveinvestors.co.uk/companies/rns/707/LSE20181022101953_13837277/