TORONTO, ONTARIO–(Marketwired – Nov. 29, 2017) –
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Feronia Inc. (“Feronia” or the “Company”) (TSX VENTURE:FRN) today released its financial results for the three and nine months ended September 30, 2017. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q3 2017 Highlights
- Produced 37,131 tonnes of fruit (Q3 2016: 27,762 tonnes), a year-over-year increase of 34%
- Produced 6,943 tonnes of Crude Palm Oil (“CPO”) (Q3 2016: 5,273 tonnes), a year-over-year increase of 32%
- Oil extraction rate (“OER”) of 18.7% (Q3 2016: 19.0%)
- Revenues of $5,695,000 (Q3 2016: $4,380,000) primarily from the sale of 7,408 tonnes of CPO at an average price of $718 per tonne (Q3 2016: 5,650 tonnes at $735 per tonne)
- Extended maturity of the Company's 2012 Debentures from July 2017 to July 2022
- Entered into a subscription agreement for the private placement of US$17.5 million of common shares with Straight KKM 2 Limited (the “KKM Financing”)
- Net loss of $2.1 million or $0.006 per share (Q3 2016: net loss of $2.6 million or $0.007 per share)
- Closed the first US$9 million tranche of the KKM Financing
- Completed fourth and final drawdown of $14 million from the previously announced DFI Debt Facility
Xavier de Carnière, Chief Executive Officer of Feronia Inc. commented:
“Eight years after acquiring PHC, and following the investment of a considerable amount of money, time and effort, profitability is now approaching. It has not been an easy journey and has taken longer than management expected. Nonetheless, as our trees mature, our capital investment projects come in to operation and our production levels increase, each quarter sees stronger performance which is being reflected in our bottom line.”
“The final drawdown of our DFI Debt Finance facility and the recent addition of KKM as a new substantial shareholder means that the Company is now projected to be funded through to profitability and we can start looking forward, with confidence.”
“We have spent a long time rebuilding this business and we are now beginning a new phase as an organisation; an exciting phase of growth and progress rather than rehabilitation. We are relishing the challenges that this new phase will bring and, whilst we know that it won't always be smooth sailing, we are confident that we are prepared for the voyage ahead.”
Further to the press release of the Company dated November 20, 2017, Feronia now anticipates closing the US$8.5 million balance of is previously announced private placement of common shares in the capital of the Company by Straight KKM 2 Limited on or before December 31, 2017.
About Feronia Inc.
- Feronia is an agribusiness operating in the Democratic Republic of the Congo (DRC).
- At the heart of Feronia lies a long established palm oil business, Plantations et Huileries du Congo (PHC), which has three remotely located plantations; Lokutu, Yaligimba and Boteka.
- When Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the DRC. Our initial focus has been on rebuilding the business and resuming production to secure its future and the livelihoods of our employees.
- Feronia's plantations produce crude palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple and traditional diet of the Congolese and, with our products sold locally in the DRC, we are well placed to help decrease reliance on imports and increase food security and quality.
- Feronia prides itself on being the guardian of our 106 year-old palm oil business and its employees, communities, and environment. We have a long term commitment to improve the living and working environment of our employees and their communities and are committed to sustainable agriculture, environmental protection and community inclusion. Feronia has in place an Environmental and Social Action Plan which is focused on implementing environmental and social best practice and improving social infrastructure.
- Feronia is working towards certification by the Roundtable for Sustainable Palm Oil (RSPO) and is implementing IFC/World Bank standards for environmental and social sustainability. Our oil palm replanting programme is brownfield in nature – replacing old palms with new – and it has no reliance on deforestation.
- Feronia's management team has extensive experience in managing both plantations and farming operations in emerging markets.
- For more information please see www.feronia.com
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the “Loi Portant Principes Fondamentaux Relatifs A L'Agriculture”, termination or non-renewal of concession rights or expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, lack of infrastructure in the DRC, high inflation rates, limited availability of debt financing in the DRC, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), the Company's reliance on one major customer, lower productivity at the Company's plantations and arable farming operations, risks related to the agricultural industry (including adverse weather conditions, shifting weather patterns, and crop failure due to infestations), a shift in commodity trends and demands, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Feronia and its business are discussed under the heading “Risks and Uncertainties” in Feronia's Management's discussion and Analysis for the year ended December 31, 2016, a copy of which is available on the Company's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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