logo-loader
viewWoodbois Limited

Obtala says second half expansion plans unaffected by delays to subscription agreement funds

Obtala said discussions are continuing with Jiangsu Dolphin International Trading over satisfying conditions of their subscription agreement

The agricultural and forestry company signed a subscription agreement with Jiangsu in May
The agricultural and forestry company signed a subscription agreement with Jiangsu in May

Obtala Limited (LON:OBT) said a delay to the receipt of funds through a subscription agreement with Chinese timber trading company Jiangsu Dolphin International Trading Co Ltd (JDIT) has not hampered its expansion plans in the second half.

The agricultural and forestry company said JDIT has encountered unforeseen delays in obtaining regulatory approval for external investment but is seeking to resolve the issue shortly.

Discussions are continuing between the two companies over satisfying the conditions of the subscription agreement.

Obtala signed the subscription agreement in May to raise £4mln through the issue of 20mln shares at a 13% discount of 20p each to JDIT.  Warrants were exercisable at the same price to possibly raise a further £4mln.

In early July, Obtala said it had received 5% of cash proceeds while settlement transfer issues were on track to be resolved within 20-30 days following the announcement.

"The timing of the receipt of funds has not impacted our expansion plans in the second half of 2017," Obtala said in statement today.

As part of its expansion, Obtala completed its US$14.6mln acquisition of African forestry business, WoodBois International, in July. 

Quick facts: Woodbois Limited

Price: 6.3 GBX

LSE:WBI
Market: LSE
Market Cap: £29.32 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Woodbois Limited named herein, including the promotion by the Company of Woodbois Limited in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Kavango Resources hits sulphide mineralisation at KSZ in...

Headlines from the Proactive UK newsroom. Kavango Resources (LON:KAV) has announced this morning its hit disseminated sulphide mineralization during drilling at their Kalahari Suture Zone Project in Botswana. Drilling on the third and last target is currently in progress. Aggregated Micro...

1 week, 1 day ago

2 min read