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.
