Feronia Inc. has announced the closing of the second tranche of the private placement of secured convertible debentures totaling US$983,500 with the African Agriculture Fund through its subsidiary, Golden Oil Holdings Ltd.

 

The funds from the offering will be used as working capital, with particular focus of providing capital to the company’s subsidiaries in the Democratic Republic of the Congo (DRC). The funds will also be used to enhance environmental and social standards for both employees and locals through the improvement of community facilities, access to drinking water, sanitation, and housing.

 

The debentures are scheduled to mature on January 22, 2016 at which point they will be converted to common shares at a per share price equal to C$0.25 per share, or the discounted market price at the time of conversion – whichever is greater, or repaid.

 

Feronia Inc. is an agribusiness operating in the Democratic Republic of the Congo (DRC) with interests in palm oil production and rice production and processing. Feronia acquired its palm oil business, Plantations et Huileries du Congo, from Unilever in 2009, and has been working to resume production and rebuild the business. The company is currently working on gaining certification from the Roundtable for Sustainable Palm Oil (RSPO) and is incorporating IFC/World Bank standards for social and environmental sustainability.

 

 

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