Obtala Limited (LON:OBT) has been evaluating WoodBois, the timber trading company it acquired in June, and is now ready to kick-on with its expansion plans.
The African agricultural and forestry company announced earlier this week that it had provided a US$1mln loan to its timber-trading business to augment a trade finance arrangement that is being finalised.
The company said in a stock market statement on Thursday that additional trade finance is just the first step in unlocking the potential of Obtala’s timber trading division.
Management has also been deepening relationships with key suppliers and trading partners, identifying the most profitable trades and markets to develop to maximize its return on capital.
“We expect 2018 to be an exciting year for our timber trading division as we begin to increase our share of the growing African export market,” the company said.