TORONTO, ONTARIO--(Marketwired - Nov 8, 2013) - CDC Group plc., 123 Victoria Street, London SW1E 6DE, United Kingdom (CDC) today announced that it has completed, by way of a private placement (the Private Placement), the acquisition of 151,496,000 common shares at a subscription price of CAD$0.10 per common share in the capital of Feronia Inc. (Feronia) for an aggregate subscription price of US$14.5 million.
The common shares purchased by CDC pursuant to the Private Placement represent approximately 27.5% of the currently issued and outstanding common shares of Feronia. The Private Placement was a private transaction outside of any market or other facility and the common shares were issued from Feronia's treasury.
Concurrently with the Private Placement, on November 8, 2013, CDC and Feronia entered into a non-revolving convertible term loan (the Facility), for a term of up to five years (the Maturity Date), in the maximum amount of US$3,600,000 at an interest rate of 12% per year. Funds borrowed under the Facility will be used by Feronia solely to finance capital expenditures which are required to implement an environmental, social and governance plan that has been agreed between Feronia and CDC.
On the Maturity Date and in certain other circumstances, the principal payable under the Facility may be converted into common shares of the Corporation at a rate of CAD$0.24 per common share (subject to customary adjustment provisions) and, subject to TSX Venture Exchange approval, the interest payable under the Facility may be convertible into common shares at a rate equal to the greater of CDN$0.24 and the Discounted Market Price (as defined in the TSXV's Corporate Finance Manual).
CDC has acquired the common shares for investment purposes. CDC may, in the future, increase or decrease his ownership of securities of Feronia, directly or indirectly, from time to time depending upon the business and prospects of Feronia and future market conditions.
CDC has filed an early warning report (EWR) pursuant to Multinational Instrument 62-104 -Take-over Bids and Issuer Bids, on SEDAR (www.sedar.com) under Feronia's SEDAR profile.
For more information or to obtain a copy of the early warning report, please contact:
|CDC Group plc.|
|123 Victoria Street|
|London SW1E 6DE|
|Attention: Edgar Buckley or Rhyddid Carter, Communications Team|
|Facsimile No.: +44 (0)20 7963 4750|