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AAAP - Anglo African Agriculture News Story

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Sector
Consumer Defensives
Size
Micro Cap
Market Cap £1.26m
Enterprise Value £2.31m
Revenue £1.77m
Position in Universe 1789th / 1810

Anglo African Ag PLC: Corporate update

Thu 29th April, 2021 8:21am
The information contained within this announcement is deemed to constitute
inside information pursuant to the EU (Withdrawal) Act and amended pursuant to
Market Abuse (Amended) (EU Exit) Regulations 2019. Upon the publication of
this announcement, this inside information is now considered to be in the
public domain.

For immediate release

29 April 2021

Anglo African Agriculture plc

(“AAA” or the “Company”)

Corporate Update

The Company is pleased to provide a progress update on the proposed
acquisition of the Comarco group of companies (the “Comarco Group”). The
Comarco Group is based in Mombasa, Kenya and is engaged in port and marine
logistics activities in East Africa.

Comarco business update

Despite the uncertainty created by Covid-related lockdowns and business
interruptions, Comarco continues to operate in line with management budgets.

The Comarco management team has focused on new business and Comarco has
secured contracts in the coastal waters in and around Kenya, Tanzania,
Mozambique and Somalia as well as its first contract on Lake Tanganyika.

In the Comarco Port Division delivery of iron ore into the yard for export has
recommenced in early April 2021. Negotiations to secure a substantial coal
import contract are at an advanced stage. This will substantially boost
throughput volumes and the overall performance of the port.

One of recently executed contracts involve Comarco being contracted by the
Kenya Ports Authority (“KPA”) to carry assorted equipment for cargo
handling and navigation from Mombasa to Lamu port that is being
operationalised. Comarco provided a 106-metre shoal-draft flat-bottomed flat
top barge C231 to move the equipment, and it was towed by the tug MV Comarco
Swift. Comarco will further transfer a Rubber-Tyred Gantry Crane to Lamu Port
during May 2021. The current contract with KPA follows a successful contract
in September 2021 to transfer four Rubber Tyred Gantry (RTG) cranes from one
section of Mombasa Port to another.

In the meantime Comarco’s on-going work with the Fujita Corporation in
support of the Southern Bypass Road Construction project as well as the
soon-to-commence Kilindini harbour bridge construction project, will benefit
both the Marine and Port divisions.

Update on LNG project in Mozambique

On Monday 26 April 2021, Total Group announced a “force majeure” on its
Mozambique LNG project and Comarco management is monitoring the developments
closely as part of its future growth opportunities would have been greatly
assisted by providing its port and marine logistics services to the LNG
project contractors. Thus far there has not been any material impact on any
existing contracts with LNG contractors, however this development is expected
to lead into delays in the resumption of works at the project and thus impact
the future contract pipeline opportunities of Comarco.

Transaction funding update

The Company is working with Comarco in order to secure the necessary
arrangements to provide sufficient working and expansion capital to conclude
the RTO and put the combined group on a growth path after Admission. A revised
term sheet with a large regional commercial bank is in advanced stages of
finalisation that could provide Comarco with access to additional growth
funding once the reverse takeover (“RTO”) has been completed.

Discussions and due diligences with equity and debt funders are progressing.
Further announcements will be made once binding agreements are executed.

Extension of sale agreements

As a result of the ongoing discussions, the Company and shareholders of
Comarco group of companies have agreed to extend the existing sale and
purchase agreements (“SPAs”) until 30 September 2021 to allow for
sufficient time to finalise the fund raising process and complete the RTO.
Documentation to formalise this extension is currently being finalised.

For further information, please visit www.aaaplc.com or www.comarcogroup.com
contact the following:

 Anglo African Agriculture plc                                                                                              
 David Lenigas, Non-Executive Chairman                                              +44 (0)20 7440 0640                     
 Rob Scott, Executive Director                                                      +27 (0)84 6006 001                      
                                                                                                                            
 Comarco Group Simon Phillips (Chief Executive) Charlie Pettifer                    +27 (0)82 6191 081 +44 (0)77 8811 4411  
                                                                                                                            
 VSA Capital Limited (Financial Adviser and Corporate Broker)                       +44 (0)20 3005 5000                     
 Andrew Raca, Maciek Szymanski (Corporate Finance) Andrew Monk (Corporate Broking)                                          



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