AAA moves ahead with Kenyan oil and logistics port loan
Further to the announcement made by the Company on 14 September 2018 concerning the proposed provision of a loan to the privately-owned, Kenyan-based port and marine logistics group, Comarco Group (“Comarco”), the Board of AAA is pleased to announce that all the conditions precedent for the loan have been met and the $1 million loan has been advanced to Comarco.
David Lenigas, Non-Executive Chairman, commented;
“I am delighted that we have completed our due diligence and decided to advance this loan to Comarco. This transaction and funding will allow them to fully capture the recent upswing in its port activities and for AAA to develop our relationship. Since our announcement that we intended entering into this loan, we have been approached by numerous parties expressing their interest to cooperate with us in various forms.
This is significant, as this clearly demonstrates that we have managed to find a very valuable and uniquely positioned asset with potentially very large upside potential. The recent oil price rise has been highly beneficial for the port, as it is heavily exposed to oil and gas related services (although not solely reliant thereon).
I am also delighted that the trading at both our fully owned subsidiary, Dynamic Intertrade (Pty) Ltd as well as our 46.8% owned subsidiary, Dynamic Intertrade Agri (Pty) Ltd, are continuing on their improved trend. We are now well positioned to grow the AAA business significantly and deliver the type of performance our shareholders expect.”
The 24-month loan will be used to help fund the growth of Comarco’s port and marine logistics business and repay existing debt. The secured loan is provided at a 12% rate per annum increasing to 15% after nine months. In addition to this, AAA has begun to provide assistance with Comarco’s restructuring.
The Directors are confident that the loan will open new avenues for both AAA and Comarco to jointly find and work on investment opportunities.
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