Feronia Inc. announces $11 million short-term loan facility
Feronia Inc. (“Feronia” or the “Company”) (TSXV: FRN) is pleased to announce that it has entered into a loan facility for $11 million. All amounts in this press release are expressed in US dollars unless otherwise indicated.
The unsecured subordinated short term facility bears interest at a rate of 4% per annum and has been provided by CDC Group plc, the UK Government’s development finance institution. The facility matures on March 31, 2020, subject to acceleration in certain circumstances.
Funds advanced under the facility will be used for working capital, including environmental, social and governance improvements and other general corporate purposes, whilst the Company seeks to strengthen its financial position. This new facility is in addition to the $5 million facility previously announced by the Company on October 28, 2019, which has been amended to mature on March 31, 2020, subject to acceleration in certain circumstances.
The execution of the facility constitutes a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on valuation and minority approval exemptions set forth in MI 61-101.
Frank Braeken, Executive Chairman of Feronia Inc. commented: “We thank CDC for its commitment, belief and support as we work hard to turn PHC into a financially sustainable business, implement ongoing improvements in the way we operate and contribute to social and sustainable development in very remote rural parts of the DRC.”
