First production supplying around 100 tonnes per month of sundried product to an off-take partner will be completed by September, Obtala confirmed.
First production supplying around 100 tonnes per month of sundried product to an off-take partner will be completed by September, Obtala confirmed.
Africa-focused agri-business Obtala Resources (LON:OBT) confirmed its first harvest of sun-dried tomatoes is due in September as it turned to the market to raise £269,340.
Shares were placed at 6.15 pence each (compared with a close of 7.54 pence), while the group has also issued warrants with a strike price of 7.69p that can be exercised immediately and are valid for four years.
Operationally, Obtala said it has made “significant progress” on the Morogoro sun-dried tomato project in Tanzania.
A total of 130 hectares have now been cleared, with a detailed topographic survey for drainage control underway, it added.
Land preparation and substantial water supply work is expected to be completed by the end of June and the installation of a nursery and drip irrigation equipment is expected to be completed by the end of July, with plantlets being sown simultaneously, it went on.
On that basis, first production supplying around 100 tonnes per month of sun-dried product to an off-take partner will be completed by September, Obtala confirmed.
Chairman Francesco Scolaro said: "Our focus is to move as swiftly as possible to fulfil our orders under our off-take agreement and generate cash flows with high margins, meeting all EU food regulation and requirements.
“We are comfortable that the company now has sufficient funds to take phase-one through to production and delivery, whereby phases-two and three will be funded internally through revenues generated by phase-one.
“I am confident that our agriculture model will be successful, notwithstanding external delays, and prove to be profitable. I am encouraged by the continued support of our European off-take partners and our team on the ground in Tanzania."
Africa-focused agri-business Obtala Resources (LON:OBT) confirmed its first harvest of sun-dried tomatoes is due in September as it turned to the market to raise £269,340.
Shares were placed at 6.15 pence each (compared with a close of 7.54 pence), while the group has also issued warrants with a strike price of 7.69p that can be exercised immediately and are valid for four years.
Operationally, Obtala said it has made “significant progress” on the Morogoro sun-dried tomato project in Tanzania.
A total of 130 hectares have now been cleared, with a detailed topographic survey for drainage control underway, it added.
Land preparation and substantial water supply work is expected to be completed by the end of June and the installation of a nursery and drip irrigation equipment is expected to be completed by the end of July, with plantlets being sown simultaneously, it went on.
On that basis, first production supplying around 100 tonnes per month of sun-dried product to an off-take partner will be completed by September, Obtala confirmed.
Chairman Francesco Scolaro said: "Our focus is to move as swiftly as possible to fulfil our orders under our off-take agreement and generate cash flows with high margins, meeting all EU food regulation and requirements.
“We are comfortable that the company now has sufficient funds to take phase-one through to production and delivery, whereby phases-two and three will be funded internally through revenues generated by phase-one.
“I am confident that our agriculture model will be successful, notwithstanding external delays, and prove to be profitable. I am encouraged by the continued support of our European off-take partners and our team on the ground in Tanzania."
Source: Proactive Investors, reported by Ian Lyall in London
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