REG - Amala Foods PLC - Further re Corporate Update

Amala FoodsAnnouncement

02/03/2022 09:45

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RNS Number : 3620D  Amala Foods PLC  02 March 2022

 

Amala Foods Plc

("Amala" or the "Company")

 

Further re: Corporate Update

 

Amala Foods Plc (LON: DISH), a food technology company, is pleased to announce
a further update to the previous Corporate Update on 17 February 2022.

The Company continues to progress dialogue with Terra Rara UK Ltd with regards
to the potential transaction and has executed an updated term sheet which will
form the basis of a definitive agreement.  Due diligence is now in process
with a view to the execution of an agreement to acquire the entire issued and
to be issued share capital of Terra Rara UK Ltd which holds majority interests
via two subsidiaries in several exciting Rare Earth Elements (REE) projects in
Uganda and Angola as announced previously.

 

The Company has executed an updated term sheet with improved terms that is
subject to the execution of a definitive agreement.  The terms set out in
the term sheet will provide current shareholders with 30% of the enlarged
Company.  Based on the current number of outstanding shares and the new FCA
requirement of a minimum market capitalisation of £30 million for new
listings that came into force on 3 December 2021, if successful, this
provides a "see through" valuation of approximately 2p per share.  The
Company can confirm that it is also working with known funding partners who
have committed, subject to satisfactory due diligence, to provide the funding
for the transaction, at the valuation above, in sync with Terra Rara
vendors.

 

Whilst the Directors are optimistic that the transaction will conclude, there
can be no guarantees.

 

Aidan Bishop, Director, commented:

 

"Should this transaction conclude it will result in a complete transformation
for the Company."

 

 

Enquiries:

 

Jonathan Morley-Kirk, Non-Executive Chairman

jmk@bigdish.com

 

 

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