It is issuing 70.8mln new shares, priced at 0.67p, which will equate to 39.2% of the group’s enlarged share capital. Lenigas is himself taking 22.38mln shares, giving him 12.4% of the company.
Anglo African Agriculture told investors it will use the injection of funds to satisfy its creditors and allow the working capital to grow Dynamic Intertrade, the company’s wholly owned food manufacturing and marketing business.
Dynamic Intertrade, which operates from a facility in Cape Town, is focused on the manufacture, import and distribution of herbs, spices and seasonings for the food manufacturing sector.
Lenigas, in a statement said: “The building blocks for AAA and Dynamic have taken a few years to put in place and management have a very clear strategy in place to grow this exciting food manufacturing business.
“I see tremendous opportunities to organically grow this business and look forward to assisting the company grow not only its South African customer base, but also expanding the company’s product range and taking its business in to the global market place.”
@richardphipps7 I'm excited about Spices! That's why I joined as Chairman of AAAP:LN. And every proper broker globally can trade LSE.— David Lenigas (@DavidLenigas) September 5, 2016
In the statement, AAA said Dynamic’s turnover for the nine months to July 31 amounted to approximately £1.4mln (ZAR 26.8mln), and it is expected to increase turnover in accordance with a ‘seasonal boost’ in the latter part of the financial year.
The company also noted that it had been focussing on higher margin products, where it hopes to see traction in the market.
Lenigas, who has taken over from Neil Herbert, joins as the company brings to an end a strategic review process which among other things considered the possibility of a sale.
AAA said no approaches were received that would have resulted in an offer being made for the company and having considered a number of commercial proposals from third parties, it concluded that a placing of shares was in the best interests of the company.