Cambria Africa PLC Open Offer raises £2.1 million Equity (2006U)

TIDMCMB

RNS Number : 2006U

Cambria Africa PLC

10 July 2018

Cambria Africa Plc

("Cambria" or the "Company")

Open Offer raises GBP2.1 million Equity

Result of Open Offer

Cambria announced on 15 May 2018 an Open Offer to Qualifying Shareholders which has raised a total equity investment of GBP2.1 million (US$2.8 million) as a result of issuing 191 million ordinary shares. A total of GBP503,102.50 was raised in cash from minority shareholders and GBP1,595,000 was raised through conversion of its loans into equity by Ventures Africa Limited (VAL). VAL is the controlling and majority shareholder of the Company.

Including VAL's Open Offer Participation, the aggregate participation ratio was 81%. Of minority shareholders, 45% participated in the Open Offer. Excluding Consilium, and funds under their management or influence, 60% of minorities participated in the Open Offer. Cambria signed a deed of settlement with Consilium in October 2017.

The Open Offer closed for applications at 11.00 a.m. on Friday, 6 July 2018. Applications under Open Offer Entitlements totalled 190,288,648, being 145,000,000 from VAL and 45,288,648 from remaining shareholders, while 447,945 applications were received under the Excess Application Facility.

Comment on Open Offer

Commenting on the Open Offer Result, Mr. Shasha said,

"I spoke to many investors who participated in the Open Offer. Like myself, they were businesspeople and entrepreneurs for whom this investment is a significant part of their portfolio. This is a vote of confidence by my co-shareholders for Cambria Africa and most importantly our explicit strategy of investing in Zimbabwe.

"The Company is now holding over $2.8 million cash following completion of the Open Offer and from operations, allowing us to identify and act on investment opportunities in Zimbabwe. Our balance sheet is stronger than it has been in a long time , with net equity per share up 64% at 0.85 cents per share debt down 71%."

Issue of New Ordinary Shares

It is anticipated that trading in the shares issued under the Open Offer will commence on 16 July 2018 ("Admission"). Following Admission, the Company will have 544,575,605 total shares in issue. Cambria has no shares in Treasury, therefore this figure may be used by shareholders from Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Following Admission, VAL will own 377,000,000 Ordinary Shares in the Company, representing 69.2% of the issued share capital of the Company. Prior to the Open Offer, VAL owned 232,000,000 Ordinary Shares (65.6%).

Financial Effects and Pro Forma Balance sheet

As a result of the Open Offer, Cambria's Net Asset Value ('NAV') per share increases by 0.33 cents (US) per share to 0.85 cents (US) per share from 0.52 cents (US) per share, a 64% improvement. Debt will fall by 71% from $2.96 million to $846,000 as a result of VAL's Open Offer Participation.

Set out below is the unaudited pro forma statement of financial position illustrating the impact of the Open Offer on the most recently published Statement of Financial Position of the Company as at 28 February 2018:

 
                                        BEFORE           Adjustment   Adjustment           AFTER 
                                                                  1            2 
                                  Consolidated          Open Offer:      Balance       Pro forma 
                                   & unaudited    VAL's Entitlement      of Open    consolidated 
                                                                           Offer     & unaudited 
                                     28-Feb-18                                         28-Feb-18 
                                       US$'000              US$'000      US$'000         US$'000 
-------------------------------  -------------  -------------------  -----------  -------------- 
 
 Property, plant and equipment           2,802                    -            -           2,802 
 Goodwill                                  717                    -            -             717 
 Intangible assets                          20                    -            -              20 
 Total non-current assets                3,539                    -            -           3,539 
-------------------------------  -------------  -------------------  -----------  -------------- 
 Inventories                               225                    -            -             225 
 Financial assets at fair 
  value                                     99                    -            -              99 
 Trade and other receivables             1,004                    -            -           1,004 
 Cash and cash equivalents               1,518                    -          668           2,186 
 Discontinued operation                      2                    -            -               2 
-------------------------------  -------------  -------------------  ----------- 
 Total current assets                    2,848                    -          668           3,516 
                                                                                  -------------- 
 Total assets                            6,387                    -          668           7,055 
===============================  =============  ===================  ===========  ============== 
 
 Equity 
 Issued share capital                       51                   19            6              76 
 Share premium account                  85,686                2,099          662          88,447 
 Revaluation reserve                       438                    -            -             438 
 Foreign exchange reserve             (10,625)                    -            -        (10,625) 
 Non distributable reserves              1,905                    -            -           1,905 
 Retained losses                      (75,613)                    -            -        (75,613) 
-------------------------------  -------------  -------------------  -----------  -------------- 
 Equity attributable to owners           1,842                2,118          668           4,628 
 Non-controlling interests                  60                    -            -              60 
 Total equity                            1,902                2,118          668           4,688 
-------------------------------  -------------  -------------------  -----------  -------------- 
 
 Liabilities 
 Loans and borrowing                     1,464              (1,464)            -               - 
 - VAL Loan                              1,464              (1,464)            -               - 
 - CABS Loan                                 -                    -            -               - 
                                 -------------  -------------------  -----------  -------------- 
 Trade and other payables                   90                    -            -              90 
 Provisions                                195                    -            -             195 
 Deferred tax liabilities                  184                    -            -             184 
 Total non-current liabilities           1,933              (1,464)            -             469 
-------------------------------  -------------  -------------------  -----------  -------------- 
 Current tax liabilities                   313                    -            -             313 
 Loans and borrowings                    1,500                (654)            -             846 
 - VAL Loan                                972                (654)            -             318 
 - CABS Loan                               528                    -            -             528 
                                 -------------  -------------------  -----------  -------------- 
 Trade and other payables                  714                    -            -             714 
 Discontinued operations                    25                    -            -              25 
------------------------------- 
 Total current liabilities               2,552                (654)            -           1,898 
                                 -------------  -------------------  -----------  -------------- 
 Total liabilities                       4,485              (2,118)            -           2,367 
------------------------------- 
 Total equity and liabilities            6,387                    -          668           7,055 
===============================  =============  ===================  ===========  ============== 
                                                                                               - 
 Number of shares in issue 
  ('000s)                              353,839              145,000       45,737         544,576 
 NAV (cps)                                0.52                                              0.85 
 

Notes to adjustments:

1. VAL's Open Offer Participation of 145,000,000 Ordinary Shares and accordingly, converting GBP1.595 million (approximately $2.12 million) of the VAL Loans into Equity.

2. Open Offer participation by Qualifying Shareholders other than VAL, of 45,736,593 Ordinary Shares raising GBP503,102.50 (approximately $668,000).

Definitions

This announcement should be read in conjunction with the full text of the Circular posted to Shareholders on 5 June 2018, a copy of which is available on the Company's website at (http://www.cambriaafrica.com/investors/shareholder-documents).

Capitalised terms in this announcement have the same meaning as given in the Circular.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

 
 Contacts 
 
 Cambria Africa Plc:        www.cambriaafrica.com 
 Samir Shasha               [phone] 
 Email:                     [e-mail] 
 
 WH Ireland Limited:        www.wh-ireland.co.uk 
 James Joyce / Alex Bond    [phone] 
 

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM

 
 1     Details of the person discharging managerial responsibilities/person closely associated 
 a)    Name                                                      Samir Shasha 
      --------------------------------------------------------  ------------------------------------------------------ 
 2     Reason for the notification 
      ---------------------------------------------------------------------------------------------------------------- 
 a)    Position/status                                           Chief Executive Officer, Cambria Africa Plc 
      --------------------------------------------------------  ------------------------------------------------------ 
 b)    Initial notification/ Amendment                           Initial Notification 
      --------------------------------------------------------  ------------------------------------------------------ 
 3     Details of the issuer, emission allowance market participant, auction platform, auctioneer 
        or auction monitor 
      ---------------------------------------------------------------------------------------------------------------- 
 a)    Name                                                      Cambria Africa Plc 
      --------------------------------------------------------  ------------------------------------------------------ 
 b)    LEI                                                       N/A 
      --------------------------------------------------------  ------------------------------------------------------ 
 4     Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) 
        each type of transaction; (iii) each date; and (iv) each place where transactions have been 
        conducted 
      ---------------------------------------------------------------------------------------------------------------- 
 a)    Description of the financial instrument, type of          Ordinary Shares of 0.01p each 
       instrument 
 
       Identification code                                        IM00B28CVH58 
      --------------------------------------------------------  ------------------------------------------------------ 
 b)    Nature of the transaction                                 Conversion of loan from ultimate beneficially owned 
                                                                 company, Ventures Africa Limited 
      --------------------------------------------------------  ------------------------------------------------------ 
 c)    Price(s) and volume(s)                                     Price(s)           Volume(s) 
                                                                              1.10p              145,000,000 
                                                                                     ----------------------- 
      --------------------------------------------------------  ------------------------------------------------------ 
 d)     Aggregated information 
     *    Aggregated volume                                       145,000,000 
                                                                    1.10p 
 
     *    Price 
 -------------------------------------------------------------  ------------------------------------------------------ 
 e)    Date of the transaction                                   6 July 2018 
      --------------------------------------------------------  ------------------------------------------------------ 
 f)    Place of the transaction                                  London Stock Exchange, AIM 
      --------------------------------------------------------  ------------------------------------------------------ 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 10, 2018 09:45 ET (13:45 GMT)