Obtala Limited (LON:OBT), the Africa-focused agricultural and forestry company has announced that it's raised a total $14.25mln cash investment into 40,728 Preference shares in Argento Limited, Obtala's 75%-owned forestry subsidiary.
They'd actually set out to raise $10 mln, Obtala's CEO Paul Dolan tells Proactive: ''I think the strength of the story certainly helped to sell it and our maximum headroom in terms of allowance that we could sell was just short of $20 mln''.
''The Preference Share is convertible at the holder's option into either the Argento forestry subsidiary or Obtala''.
Dolan also mentions they're expecting another $5 mln to come through which would take them to their maximum allowance of $19.25 mln.
''As a small company when you're going out to look to raise funds, you never count on definitely getting the deal done so we're very happy to have oversubscribed on this''.
In terms of where the money gets spent: ''We were very clear that the primary aim is to put the Argento business into full production. So we're looking at establishing a central sawmill and then mobile units in our concessions and a fleet of trucks to ferry the timber from the concessions into the central sawmill'', Dolan says.
A portion of the funds raised will also go towards Obtala's agriculture project in Tanzania.