Obtala Limited (LON:OBT), the Africa-focused agricultural and forestry company, on Thursday said it raised a total $14.25mln cash investment into 40,728 Preference shares in Argento Limited, Obtala's 75%-owned forestry subsidiary.
Investors spanned private HNW investors, professional institutional investors and international trading houses. Board members invested $2.15mln of the total raised.
This is in line with the "inward investment" commentary included in the company’s third quarter business update announced on 30 September. A further $5mln investment is expected to be agreed in due course.
Argento Limited will reorganise capital and issue 75,000 Preference shares in addition to a total 237,465 issued Ordinary shares, totaling 312,465 voting shares.
The breakdown of use of 70,322 Preference shares is as follows:
40,728 Preference shares have been subscribed to raise US$14.25m in new funds.
15,308 Preference shares have been agreed to be swapped for certain Meradell structures which raised approximately $3.7m over the course of 2016.
14,286 Preference shares are 'soft-circled' for a further potential $5m investment.