Dekel Agri-Vision plans £2 million fundraise, debt restructuring

Published 26/06/2025, 16:46
Dekel Agri-Vision plans £2 million fundraise, debt restructuring

LONDON - West African agriculture company Dekel Agri-Vision (AIM:DKL) announced Thursday a proposed fundraising to conditionally raise approximately £2 million through a placing and subscription at 0.55 pence per share, representing a 37.5% discount to Wednesday’s closing price.

The company also plans to convert an outstanding loan held by CEO Youval Rasin into shares at the same price, following an announcement made in June 2024. This conversion would transform approximately £1.03 million of debt into equity.

Dekel has negotiated revised terms with lenders NSIA Bank, BIDC, and AgDevCo to restructure its debt obligations. The company stated that NSIA Bank agreed to restructure its facility into a six-year term loan with a two-year principal grace period. AgDevCo approved restructuring its facility into a seven-year term loan with a 24-month grace period starting August 2025, while BIDC agreed to a six-year term loan with an 18-month grace period.

The company operates a crude palm oil project in Ayenouan and a cashew processing facility in Tiebissou, Côte d’Ivoire. According to the announcement, the palm oil operations continue to generate consistent positive cash flow, while the cashew processing operation is transitioning toward positive EBITDA contribution.

Dekel reported that its palm oil division maintains positive EBITDA, while the cashew operation has shown improvement over the past six months. The company expects to publish its audited annual report for the year ended December 2024 by June 30, 2025.

The net proceeds will be used to strengthen the balance sheet and provide working capital as the business continues growth efforts while ensuring compliance with existing financing arrangements, according to the company statement based on a press release.

Zeus Capital is acting as nominated adviser, sole broker and bookrunner for the fundraising, which is conditional upon shareholder approval at a general meeting scheduled for July 22, 2025.

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