Obtala raises £4mln from Hong Kong investor

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Obtala raises £4mln from Hong Kong investor

7:50 CAT | 29 Mar 2017

File photo / Forestry in Mozambique is one of Obtala's operations

African forestry and agriculture group Obtala Ltd has raised £4mln through a share issue to a Hong Kong-based high net worth investor.

Wealth Rank Limited will subscribe for 20mln new shares at 20p, a 13% premium to the closing price on Monday. Warrants at the same price exercisable over the next 18 months may raise an additional £4mln.

Miles Pelham, Obtala’s chairman, said he was delighted by the investment from WRL, which underlines the attractiveness assigned to Obtala’s substantial assets he said.

Obtala owns ten forestry concessions in Northern Mozambique, while its agriculture business is planting melon primarily but also butternut, onion and feed maize.

Shares rose 5% to 18.5p.

Source: Proactive Investors