Feronia closes US $9M 1st tranche of US $17.5M Straight KKM 2 financing

pcJ News Briefs – Feronia Inc. (TSX V: FRN) closed the first US $9 million tranche of the previously announced subscription by Straight KKM 2 Limited for US $17.5 million of common shares at a price of CDN $0.18 per share. The US $4 million bridge loan advanced by two funds managed by the majority shareholder of KKM was applied towards the subscription amount for this first tranche.

As a result of closing this first tranche, KKM holds approximately 14.76% of the issued and outstanding common shares, thus became an ‘insider’ of the company.

Pursuant to the rules of the TSXV, Feronia obtained the written approval for the private placement of its two largest shareholders, CDC Group Plc and African Agriculture Fund which collectively control 93.7% of per-financing outstanding common shares.

photo credit: Feronia Inc.

News Release

Feronia Inc. Announces Closing of First Tranche of Previously Announced US$17.5 Million Private Placement of Common Shares

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

TORONTO, ONTARIO – October 16, 2017: Feronia Inc. (“Feronia” or the “Company”) (TSXV: FRN) is pleased to announce that it has closed the first US$9 million tranche of the previously announced subscription by Straight KKM 2 Limited (“KKM”) for US$17.5 million of common shares in the capital of the Company (“Common Shares”) at a price of Cdn.$0.18 per Common Share (the “Private Placement”). Based on a fixed exchange rate of Cdn.$1.253 per US$1.00 as set out in the applicable subscription agreement, the Company has issued 62,650,000 Common Shares to KKM pursuant to this first tranche. The US$4 million bridge loan (the “Loan Facility”) advanced to the Company by two funds managed by the majority shareholder of KKM was applied towards the subscription amount for this first tranche.

Further details regarding the Private Placement and the Loan Facility are described in the press release of the Company issued on September 25, 2017. The Company anticipates that the closing of the US$8.5 million balance of the Subscription Amount will occur in accordance with the terms of the Subscription Agreement.

As a result of closing this first tranche, KKM holds approximately 14.76% of the issued and outstanding Common Shares and thus became an ‘insider’ of the Company. Pursuant to the rules of the TSXV, the Company obtained the written approval of its two largest shareholders for the Private Placement. The Common Shares issued to KKM are subject to a four month statutory hold period.

For further information please contact:
Xavier de Carniere
Chief Executive Officer, Feronia Inc.
44 (0)7468 697 658
xavier.decarniere@feronia.com
www.feronia.com

Paul Dulieu
Director of Communications and Corporate Development, Feronia Inc.
44 (0)7554 521421
paul.dulieu@feronia.com
www.feronia.com

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