leadf
logo-loader
viewWoodbois Limited

Woodbois clears the decks with placing and debt restructuring

Woodbois is looking to pay dividends from 2021 onwards

Woodbois Limited -
Woodbois expects to be cashflow positive by the end of this year

Woodbois Limited (LON:WBI), the African forestry and timber group, has raised £13.1mln from existing investors, retail investors - via the PrimaryBid platform - and institutions as part of a debt restructuring and refinancing.

Through the debt restructuring, holders have agreed to convert 75% of US$30mln of outstanding convertible bonds into new ordinary shares and new non-voting shares. The new shares were issued at 2p, a 43% discount to the close last night.

In a statement, Woodbois said the fundraise and debt restructuring will position the company to grow its timber production and trading activities rapidly.

“In turn, the company is aiming to start making returns to shareholders following the conclusion of the 2021 financial year through a sustainable dividend policy,” it added.

Paul Dolan, chairman and chief executive, said: "The proposed fundraise and debt restructuring will transform the prospects for the company. The placing allows for the parallel conversion of approximately US$30mln of debt and obligations into equity, as well as the full elimination of the high cost 11.5% ITF [trade facility], with consequent benefit to our cash flow and profitability.

"It enables the company to also drive its growth by expanding capacity and margins in Gabon, rapidly grow its trading activities and profitability.

He added: "My proposed subscription in the fundraise of US$0.3 million reflects my confidence in the business and its prospects. On current expectations, I am confident that we can turn cash flow positive by the end of 2020 and am extremely excited by what lies ahead.

“Moreover, we are looking to position the company such that it can start repaying its shareholders through an attractive dividend policy following the 2021 financial year and beyond."

Quick facts: Woodbois Limited

Price: 2.55 GBX

LSE:WBI
Market: LSE
Market Cap: £36.48 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

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...

on 29/11/19

2 min read