Woodbois Limited Facility with Sydbank A/S ("Sydbank") (7239W)
19 Avril 2023 - 8:14AM
UK Regulatory
TIDMWBI
RNS Number : 7239W
Woodbois Limited
19 April 2023
19 April 2023
Woodbois Limited
("Woodbois", "the Company")
Facility with Sydbank A/S ("Sydbank")
Woodbois, the Africa-focused forestry, timber trading and
afforestation company, announces that Woodgroup Aps, a wholly owned
subsidiary of the Company, has received a notice from Sydbank, a
lender to Woodgroup Aps, that it is terminating a $6 million debt
facility that it holds with Woodgroup ApS (the "Facility").
Woodgroup ApS has various banking arrangements with Sydbank,
including the $6m Facility that was fully utilised and an ancillary
account with a cash balance of $3.1 million. Sydbank have a
floating charge against the assets of Woodgroup ApS and have offset
this $3.1 million in partial repayment of the Facility.
The reason cited by Sydbank for terminating the Facility was
that Woodgroup ApS generated a loss in Q1 2023. Sydbank believe
that, as a consequence, the circumstances of Woodgroup ApS have
changed significantly to their detriment.
As part of the notice Sydbank also requested that the Woodgroup
ApS present a plan for the repayment of the outstanding $2.9
million of the Facility. Sydbank has verbally indicated that they
would be open to working with the Company to at least the end of
May to allow the development of a plan to refinance the
balance.
The Company was shocked to receive this unexpected notice of
termination and has reserved its rights on the basis of the
termination and the validity of the termination notice.
Management do not agree with Sydbank's conclusion and, whilst
acknowledging the poor performance in Q1, believed the Company had
been well placed to deliver a very positive performance for the
remainder of the year.
The Company is reviewing its internal cash-flow forecasts
following this unexpected termination and, whilst it expects a
difficult trading period in the short term, management believe that
the fundamentals of the business are sound and it will continue to
work actively to find alternative funding sources in order to
continue to grow the business.
The Company has cash balances outside the Sydbank account of
$430,000 and net trade receivables of $1.5m. Management believe
that the Company can continue to operate as a going concern in the
short term, and will seek to utilise existing cash reserves and
available working capital to meet its near term operating
obligations. The Company is working with restructuring
professionals and is taking all necessary steps to preserve the
business, whilst undertaking a concerted contingency planning
exercise. The board continues to work with all other creditors and
stakeholders to achieve this.
The Company will make further announcements as necessary.
Enquiries
Woodbois Limited
Paul Dolan, CEO
Carnel Geddes, CFO +44 (0) 20 7099 1940
Canaccord Genuity, Nominated Adviser
Henry Fitzgerald O'Connor, Harry Pardoe +44 (0) 20 7523 8000
Market Abuse Regulation
The information contained within this announcement would have,
prior to its release, constituted inside information as stipulated
under Article 7 of the Market Abuse Regulation (EU) No.596/2014 as
incorporated into UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019 ("UK MAR"). Upon the
publication of this announcement via a regulatory information
service, this inside information will be considered to be in the
public domain. For the purposes of UK MAR, the person responsible
for arranging for the release of this information on behalf of the
Company is Carnel Geddes.
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END
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April 19, 2023 02:14 ET (06:14 GMT)
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