WBI Woodbois Limited

8 February 2024

Woodbois Limited

("Woodbois", the "Group" or the "Company")

$5m Trade Finance Term Sheet Signed

Gabon Operational Progress

 2023 Reporting & 2024 Outlook

Woodbois Limited (AIM: WBI), a leading company in the international timber industry, is pleased to announce the following strategic advances since the end of 2023.

The entire executive team is currently in Gabon implementing the Group's 2024 strategic initiatives following the previously announced changes in senior management.  This, together with the work on the Trade Finance facility has led to a short delay from the anticipated timing of this announcement, for which the Company apologises. 

Additional $5m Trade Finance Term Sheet Signed

Further to the announcement of 29^th December 2023, where the Company disclosed it was looking to finalise a trade finance facility of $3.5m, the Company is pleased to update that it has today entered into a term sheet for a $5m facility, (the "Trade Facility"). This will allow Woodbois to rapidly expand its third-party and own production trading, which is expected to significantly contribute to the Company's profitability this year. A further announcement will be made in due course when the Company executes the Trade Facility.

Gabon Operational Progress

The funds flowing from the new Trade Facility and other initiatives to enhance financial flexibility will enable the Group to achieve much greater activity and revenues in Gabon, as well as its strict focus on its drive to profitability, including:

·    the commencement of a second shift in the Mouila sawmill;

·    Increasing veneer production;

·    production optimisation through improved line configuration and machinery maintenance, increasing yields and easing of bottlenecks such as kiln drying;

·    cost savings through simpler, more direct management structures and other efficiencies;

·    improvements in export processes; and

·    worker and community welfare improvements.

2023 Reporting & 2024 Outlook

Prior Company updates, including that of 28^th December 2023, noted that the year was characterised by various challenges resulting in the much lower production output, trading, turnover and overall activity than in prior years.  

Unaudited net working capital at the 31 December 2023 was estimated at $4.7m including cash of $0.5m and excluding borrowings of $2.7m, the latter of which was reduced from $14.3m at the end of 2022. The working capital position has not changed significantly by the end of January 2024.  The Company expects to issue its audited 2023 results in May 2024.

The Board is confident that 2024 will mark a positive and decisive turning point for Woodbois, turning the Company into a reliable, cash generative and profitable business with a high-quality investor base.

The Company also hopes to announce a strengthening of the Board with the appointment of a new Non-Executive Director in the coming weeks.  

Guido Theuns, Executive Chair & CEO, said: "The new $5m Trade Facility demonstrates great belief in the future-prospects of the Company, whilst initiatives are ongoing to further enhance our operational and financial flexibility. The Board is focused to achieve profitability in 2024, through enhancing production volumes and quality, expanding third party trading, whilst also further streamlining costs and progressing the carbon credit business plan.

In my first two months as Executive Chair and CEO, I have seen the great potential in the Company and the spirit of the team. I am sure Woodbois's inherent value will become increasingly realised.

The overarching goal is to reach profitability and become cash flow positive as swiftly as possible, thereby laying the platform for material growth, including via M&A, and ensuring that Woodbois is attractive as an investment. I am highly confident we will deliver for the benefit of all stakeholders."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

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About Woodbois:

Woodbois is a Guernsey-based company at the forefront of the timber industry, committed to delivering quality products and sustainable solutions. With a legacy of innovation and a vision for the future, it strives to set industry standards and exceed expectations. Please follow the Company on X: @WoodboisLtd