Agriterra Ltd on Monday said it has raised £200,000 through a placing of 20.0 million shares at a price of 1 pence each.

Shares in the Mozambique-focused agricultural investment and sustainable development company were flat at 1.97 pence each in London on Monday morning. This means that the placing shares are being offered at a 49% discount.

The company also said it will convert £200,000 of debt held by Magister Investments Ltd in the company into 20.0 million new shares under the same terms and issue price as the placing.

Further participants will get a protected in-the-money loyalty warrant for each placing share or conversion share issued. The life of the pilows will be 24 months from the date of issue.

The proceeds will be used primarily for the company’s Mozbife division, including the purchasing of an additional 1,500 cattle, as well as providing ‘additional working capital’ to allow the company to support its other growth initiatives.

Agriterra expects the admission of the shares to occur on or around Tuesday.

Chair Caroline Havers said: ‘With this funding in place and the continuing strong financial support from our majority shareholder, Magister, Agriterra is moving steadily along in terms of implementing its ambitious growth plans, and we are only too pleased that with the proposed first ever issuance of these innovative PILOWS, we can equally be at the forefront in the development of new, shareholder-friendly, capital market initiatives’.

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