REG - Woodbois Limited - Debt Repayment Terms and Corporate Update

WoodboisAnnouncement

06/06/2023 07:00

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RNS Number : 7253B  Woodbois Limited  06 June 2023

6 June 2023

Woodbois Limited

("Woodbois", "the Company")

Debt Repayment Terms and Corporate Update

On 19 April 2023 the Company announced the unexpected termination of its
c$6.0m line of credit with Sydbank A/S (the "Bank") and the subsequent
offsetting by the Bank of c$3.1m of cash, being substantially all of the
Company's cash balances.

The Company has now reached an agreement with the Bank under which the
outstanding balance of c.$2.8m will be repaid by no later than 29 December
2023. The Company has undertaken to repay approximately $145k on each of 15
June and 30 June 2023. A further $145k is to be paid in the middle of each
subsequent month with any additional lump sums being paid to ensure repayment
of the total outstanding balance and interest by the final repayment date.
There are also financial incentives in place if the Group settles the
outstanding balance earlier in the year.  Existing security arrangements, per
the original loan facility agreement, will remain in place until the line of
credit is fully settled.

Since the termination notice from the Bank, the Company has had to operate
with an emphasis on cash realisation and limiting new liabilities. As of
today, the Company's cash balance is approximately $0.4m, its other working
capital is estimated at $5.1m and bank and other debt totalling $11.4m.

Following the termination notice, the Company continues to assess alternative
funding sources and will update the market in due course once any such
agreement has been reached. The Company is also working on the potential
deferment of c.$1.5m of debts, which fall due at the end of June. Whilst the
Directors are confident that the Company will obtain alternative funding in
the coming weeks, should they fail to do so, the Company may be reliant on the
deferment of these near-term creditors in order to continue to trade.

The Company expects to announce its annual results for the year to 31 December
2022 within the next week.

The Company also urges shareholders to vote in favour of all resolutions set
out in the circular dated 26 May 2023, which are to be considered at the
General Meeting to be held on 16 June 2023. The passing of these resolutions
will provide the Company with important flexibility to issue ordinary shares
quickly, if it is considered to be in the best interests of stakeholders.

Enquiries

 

 Woodbois Limited                                             +44 (0) 20 7099 1940

 Paul Dolan, CEO

 Carnel Geddes, CFO

 Canaccord Genuity, Nominated Adviser                         +44 (0) 20 7523 8000

 Henry Fitzgerald O'Connor, Harry Pardoe, Gordon Hamilton

 

Market Abuse Regulation

The information contained within this announcement would have, prior to its
release, constituted inside information as stipulated under Article 7 of the
Market Abuse Regulation (EU) No.596/2014 as incorporated into UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 as amended by virtue of
the Market Abuse (Amendment) (EU Exit) Regulations 2019 ("UK MAR"). Upon the
publication of this announcement via a regulatory information service, this
inside information will be considered to be in the public domain. For the
purposes of UK MAR, the person responsible for arranging for the release of
this information on behalf of the Company is Carnel Geddes.

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