Crude palm oil producer Feronia (CVE:FRN) completed another tranche from its previously announced brokered financing, the company said Wednesday.
The additional tranche raised proceeds of $3 million. Together with proceeds from the prior closing of the first tranche Feronia has raised $7.8 million.
Feronia issued two types of securities. It sold 1,684 debenture units priced at $1,000, and 1,667 share purchase warrants.
The debentures have a 12 per cent interest rate per year, which can be paid semi-annually beginning December 31, 2012.
The second security available to purchasers consisted of one common share priced at 10 cents each, it added. Feronia sold 12.7 million shares.
Feronia also paid a cash commission of seven per cent to Macquarie Private Wealth and Renaissance Securities.
securities issued are subject to a hold period that expires on December
9, 2012. Following the hold period, the company will apply to list the
debentures and warrants on the TSX Venture Exchange.
Profits from the offering will go toward working capital and capital expenditure purposes, the company said.
are pleased to conclude the second tranche of our financing with
participation from both existing shareholders and new investors,”
executive chairman Ravi Sood said.
“This financing strengthens
our balance sheet and allows management to operate from a strong working
capital position,” Sood added.
Feronia is focused on arable farming and oil palm operations in the Democratic Republic of Congo.
three plantations span 107,892 hectares, an area larger than Manhattan,
San Francisco, Brussels, Amsterdam, Zurich, Paris, Geneva, Lisbon,
Dublin and Montevideo combined.