Mercantile Ports & Logistics Ltd Fundraising Update (5506U)

TIDMMPL

RNS Number : 5506U

Mercantile Ports & Logistics Ltd

29 March 2019

29 March 2019

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Fundraising Update

On 16 November 2018, Mercantile Ports & Logistics Limited (AIM: MPL) announced a fundraising to raise GBP 29.82 million. As part of the fundraising, Hunch Ventures & Investments Private Limited subscribed for GBP 8.29million (the "Subscription Monies"). Given that the Company wishes to hold the proceeds of the fundraising in its bank account in Guernsey, approval of India's central bank (the "RBI") was required in order for the Subscription Monies to be transferred out of India.

Hunch has for some time been in a position to transfer the funds but has been informed by the Company that the RBI approval process is not yet concluded. In order to ensure that there is no doubt about Hunch's commitment to the project, Hunch has entered into an Escrow Agreement with the Company's subsidiary Karanja Terminal and Logistics Private Limited ("KTL") whereby it has agreed to transfer the Subscription Monies into an escrow account, which is controlled by KTL. The Subscription Monies will be transferred to the Company's bank account in Guernsey once the RBI process is concluded and a further announcement will be made at that time. In the meantime, the Company continues work on site in line with management's plan and has ample cash resources.

Mr Karanpal Singh, a founder of Hunch Ventures and non-executive director of MPL commented, "Hunch's participation in the recent fundraising followed extensive due diligence and is consistent with our strategy of investing in opportunities with exceptional growth prospects. Hunch has been informed that the RBI process is taking longer than originally envisaged, unfortunately due to matters outside our control. Having said that, since I joined the MPL board, our conviction in the project has strengthened further and I look forward to assisting the team at MPL in capitalising on the demand we see for the project by leveraging on our industry relationships and local knowledge. Hunch stands committed to working together with the team to grow MPL and create value for all stakeholders."

 
 Enquiries: 
 MPL                       Jay Mehta 
                           C/O Newgate Communications 
                           [phone] 
 Cenkos Securities plc     Stephen Keys 
                           [phone] 
 Newgate Communications    Fiona Norman 
 (Financial PR)            [phone] 
 

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.

END

UPDPGUWGWUPBGQB

(END) Dow Jones Newswires

March 29, 2019 12:14 ET (16:14 GMT)