Acquisition Significantly Enhances TriNorth's Presence in African
TORONTO, Sept. 4 /CNW/ - TriNorth Capital Inc. ("TriNorth") (TSX.V: TRT)
is pleased to announce its subsidiary, Feronia Inc., a company it founded to
engage in agribusiness in Africa, has concluded the purchase of a 76.2%
ownership stake in Plantations et Huileries du Congo S.C.A.R.L. ("PHC"). The
terms of the transaction are subject to a confidentiality agreement between
Feronia Inc. and Unilever plc.
"The purchase by Feronia of this business from Unilever plc is consistent
with TriNorth's strategy of long-term global investing, with a special focus
on agricultural land and commodities, to generate long-term capital growth for
shareholders," said Trinorth Director Ravi Sood. "This is a unique asset that
we expect will be the basis for the rapid expansion of Feronia throughout
Sub-Saharan Africa. Feronia has the potential to reproduce the agricultural
revolution that has occurred in Brazil over the past 30 years."
"We are very enthusiastic about the long-term potential of PHC and the
implementation of large-scale mechanized farming in the Democratic Republic of
Congo and elsewhere in Sub-Saharan Africa," said James Siggs, CEO of Feronia
Inc. "We look forward to working with PHC's team, whose expertise is
unparalleled in the agriculture industry in Africa."
Located in the Democratic Republic of Congo, PHC has been in operation
for almost 100 years and has virtually all required infrastructure for
planting and production. The region has consistent rainfall, and the land is
among the highest quality in the world. PHC has long-standing relationships
with the local communities and government, and a stable and highly trained
workforce of approximately 4,300.
The plantation produces primarily palm oil from its three properties.
Palm oil is a commodity with a rapidly growing demand throughout the world. Of
the approximately 100,000 hectare plantation, 70,000 hectares are suitable for
planting palm oil. Approximately 15,000 hectares are currently planted, and
Feronia PHC expects to expand plantings consistently for many years to fully
utilize the land available.
Capital expenditures made by Feronia will be primarily on new plantings.
Feronia will be acquiring PHC unencumbered by any debt.
Feronia is currently closing an equity issue to finance the acquisition
and refurbishment and expansion of the plantation. TriNorth is investing
approximately $2 million in this private placement. In addition, a number of
international funds are participating in this financing as are funds managed
by Lawrence Asset Management Inc. After the completion of this financing,
TriNorth will own approximately 40% of Feronia.
The development of Feronia is consistent with Trinorth's objective of
providing investors exposure to early-stage investments with a particular
focus on attractive farmlands. With its ownership in Feronia and Wild Horse
Farms of Saskatchewan, Trinorth provides Canadian investors a unique exposure
to two of the most attractive areas in global agriculture from a risk-reward
Feronia Inc. is a large-scale commercial agriculture company engaged in
identifying, acquiring and consolidating farm land and operations in Africa
with the intention of bringing them back into production using modern
agricultural techniques and practices. Feronia's management team is comprised
of senior agriculturalists with extensive experience in managing both
plantations and large-scale mechanized farming operations in frontier and
emerging markets. Feronia is strongly committed to sustainable agriculture,
environmental protection and providing support for local communities. For more
information please see, www.feronia.com.
TriNorth is a Canadian-based investment company that invests in a
diversified portfolio of companies to generate long-term capital growth for
shareholders. TriNorth takes an active interest in its investee companies from
the earliest stages, providing strategic and financial counsel, support and
direction to assist in their growth and success. TriNorth's investment
strategy includes structuring and initiating deals focused on particular
resources, themes or regions as well as launching the development of
businesses in select industries by providing assistance with the hiring of
management teams, providing seed capital and facilitating IPOs. All investment
activities of TriNorth are managed by Lawrence Asset Management Inc, a leading
Canadian alternative investment asset manager. For more information please
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking information"
within the meaning of Canadian securities law. Such forward-looking
information may be identified by words such as "plans", "proposes",
"estimates", "intends", "expects", "believes", "may", "will" and include
without limitation, statements regarding the stated use of proceeds; plan of
operations and comparative advantages; and benefits of this investment. There
can be no assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such statements.
Factors that could cause actual results to differ materially include, among
others, regulatory risks, risks inherent in foreign operations, commodity
prices, competition, and investments having no history of operations. Most of
these factors are outside the control of the Company. Investors are cautioned
not to put undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the Company
expressly disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new information, future
events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."
For further information:
For further information: Investor or Media Contact: Catherine Stretch,
TriNorth Capital Inc., (416) 362-6283, firstname.lastname@example.org