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30 May 2019 | 09:56

DekelOil's Pearlside receives €1m equity investment from Concordia to boost

Agricultural company DekelOil said its investee company Pearlside had received a €1m equity investment from Concordia Corporation. The Concordia Investment was based on an implied €6m pre-money valuation in exchange for 717 new ordinary shares in Pearlside, representing 14.9% of total shares. Following its investment, Concordia increased its stake in Pearlside to 32.8%. The proceeds would be used by Pearlside's subsidiary Capro to assist with the development of a large-scale 10,000 tpa raw cashew nut processing project at Tiebissou in Côte d'Ivoire. The total cost to build and commission the initial 10,000 tpa plant was estimated at US$15m, which is made up of US$6m for working capital and US$9m for the construction of the processing plant. Capro, now embarking on the construction phase at Tiebissou, was targeting first production to commence within 12 months. Once operational, Tiebissou would be DekelOil's second producing project in Cote d'Ivoire, alongside its Ayenouan palm oil project. At the same time, DekelOil had elected to receive repayment of a €320,000 short term bridge loan it advanced to Pearlside on a cash and shares basis. DekelOil now held a 37.8% stake in Pearlside. 'Today's €1million investment by Concordia into Pearlside provides further endorsement of the attractive economics of an initial 10,000tpa cashew processing plant at Tiebissou,' the company said. 'By providing the funds needed for the drawdown of the development loans, the Concordia investment enables the commencement of construction work at the site, which in turn puts the project firmly on track for first production in time for 2020's cashew harvesting season.'

At 9:56am: (LON:DKL) DekelOil Public Ltd share price was 0p at 3p

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