REG - Woodbois Limited - Market Update

WoodboisAnnouncement

22/10/2024 10:00

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RNS Number : 1352J  Woodbois Limited  22 October 2024

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation

 

22 October 2024

 

WOODBOIS LIMITED

("Woodbois" or the "Company")

Market Update

 

Woodbois Limited provides the following update on recent developments
regarding the Company's governance and trading status.

 

Board Composition

 

As previously announced in the RNS dated 9 October 2024, Woodbois dismissed a
Non-Executive Director under Article 111.6 owing to a serious breach of
confidentiality.

This action resulted in the board temporarily falling below the required
minimum of Non-Executive directors. The Company is in advanced discussions to
appoint two new Independent Non-Executive as part of its plans to adhere to
the best practice on corporate governance.

 

Nominated Adviser

 

On the same date it was announced that Canaccord Genuity had resigned, as
Woodbois' Nominated Adviser (NOMAD), with immediate effect. As per AIM Rule 1,
trading in the Company's shares remains suspended until a new NOMAD is
appointed. If the Company does not secure a replacement NOMAD within one month
of the suspension, AIM admission of Woodbois' shares will be cancelled. The
Company is in advanced discussions with a new NOMAD, though there can be no
certainty these discussions will be successfully concluded.

 

Operational Update

 

In further operational developments, Woodbois has this week appointed a new
Directeur Général Adjoint (DGA) / Directeur Administratif et Financier (DAF)
to its subsidiary, Woodbois Gabon SA. This appointment, together with other
specialist support, is designed to strengthen our financial and operational
controls and activity within Gabon. This will also foster enhanced dialogue
with the Gabonese Government as part of our commitment to maintaining strong
governmental relations and operational transparency, working together to
ensure any issues are resolved swiftly and with a sense of partnership for the
benefit of the country, employees and the Group.

 

As noted in the RNS of 18 September, there has been unrest in the industry
locally, related to labour negotiations and other uncertainty, which Woodbois
has not been immune to.

 

In common with other companies, Woodbois has seen numerous false, fake and
misleading postings across various unregulated social media platforms, The
Company cannot react to all of these. Woodbois can confirm that it is working
successfully, hand in hand, with the Gabonese Government and other authorities
to resolve such destabilising actions.

 

It also confirms that it is continuing its drive towards profitability and as
part of this to optimise its workforce, revise the conditions of employment,
which will ultimately benefit our communities and stakeholders. Salaries for
recent months have now been paid, though for September they have been delayed
10 days or so owing to issues with the banking system payment is expected in
full this week and employment terms to finally be revised shortly, with
harmonious relations intended to be restored.

 

Our operational focus remains on shipping existing pre-sold stock to
customers. This will free up space in our warehouses, allowing us to restart
our paused production and ensure that sawn and dried timber, as well as
veneer, are properly stored and can be sent out without delay. With the
disruptions noted above the Company now expects to ramp up production to 50
containers per month from November.

 

Intimidation of Executives

 

Since these recent developments, the board members have faced serious
intimidation, including threats of violence to their homes and families, aimed
at destabilising the Company. These threats, originating from individuals in
Europe, are unacceptable for anyone doing their very best in difficult
circumstance and have been reported in detail to the Federal Police in
multiple countries, where investigations are underway.

 

This situation has created significant safety concerns, disrupting normal
operations and potentially impacting the Company's ability to make critical
decisions

 

Funding

 

Whilst the Company reported in its interim results that the payment for the
£2m exercise of 200m  warrants at 1p per share earlier has been fully
received, this included an offset for funds of £0.24m of payments claimed to
have been disbursed by the investor for expenses allegedly made on behalf of
Woodbois. Despite many requests for corroborating evidence at this time none
has been fully provided and legal action may result.

 

The Company also awaits receipt of the £484,400 before expenses from the
placing set out in the RNS dated 18 October 2024. We expect to receive the
funds any moment from now. These proceeds will also be used to ramp up
production to 50 containers per month.

 

 

Shareholder liaison

 

The Company understands that shareholders have many questions, and it
continues to receive individual emails and messages. However, Woodbois is
required to communicate with all shareholders at the same time and in the same
way through these RNS updates and apologises that it cannot answer each
enquiry individually.

 

The Company remains committed to complying with all regulatory requirements
and restoring normal share trading as soon as possible. We thank our
shareholders for their patience and continued support during this transitional
period and reiterates that its executives are working diligently in these
difficult circumstances in the best interests of all stakeholders.

 

Further updates will be issued in due course.

 

Enquiries:

 

 Woodbois Limited

 Guido Theuns, Executive Chair & CEO           + 44 (0)20 7099 1940

 Johannes Bloemen, CFO

 Novum Securities (Joint Broker)               +44 (0) 20 7399 9427

 Colin Rowbury, Jon Bellis

 Axis Capital Markets Limited (Joint Broker)   +44 (0) 203 026 0449

 Ben Tadd, Lewis Jones

 

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