WBI Woodbois Limited

TIDMWBI

RNS Number : 5976P

Woodbois Limited

11 June 2020

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Woodbois Limited

("Woodbois", the "Group" or the "Company")

(AIM: WBI)

Operations re-commence in Gabon.

Working capital

Board changes

AGM

Paul Dolan, Chairman and CEO, commented "The effects of Covid-19 are widespread and continuing, but I am pleased to report that trading enquiries are increasing as the global economy emerges from lockdown. Reflecting the gradual shift, we are expecting to recommence limited operations in Gabon next week. We continue to focus on cash generation and preservation and to that end we are in discussions with our lenders, including the holders of the Company's unlisted debt instruments, with a view to restructuring them and thereby significantly strengthening the Company's financial position. Based on the indications of support received I am hopeful that agreement will be reached for the benefit of all stakeholders. With our AGM at the end of June I encourage shareholders to ensure their votes are cast by proxy."

Operations re-commence in Gabon

As outlined in the Annual Results statement released on 30 April, activity within the sector fell dramatically in April and has remained at low levels for most of May. Encouragingly, in the last two weeks enquiries and demand levels, particularly from Asia and the Middle East have started to return.

In Gabon the state of emergency owing to Covid-19 was partially lifted on 11 May, but restrictions on transport, working hours and the numbers of people permitted in a single workplace remain in place; importantly, the port in Libreville remains open for our exports. As a result, by the end of May we had recommenced some harvesting in the forest, where social distancing is easily managed, as well as maintenance work at the sawmill and veneer factory in Mouila. We have implemented safety protocols in both facilities in Mouila thereby allowing limited production to re-commence from 15 June. Production will be limited to a single shift in each facility until the 6pm to 6am curfew and restrictions on the numbers of people allowed to travel by bus are lifted. With a solid order book in place, we plan to return to full production as soon as restrictions are fully lifted and it is safe and permissible to do so.

Working capital

As also reported in April, the exceptional circumstances created by the Covid-19 pandemic have served to emphasise the need for the Company to enhance its operational and financial resilience. While the near-term quantum of operational working capital required has fallen with the halt in production and with trading levels reduced, the Company is carefully managing its liquidity position. As part of this, the Company is in active discussions with key lenders with regard to the possibility of restructuring its debts. We will keep shareholders updated on any such restructuring as discussions progress.

Board Changes

As the Company continues to expand, the Directors believe that it is sensible to differentiate between its operating board and that of the parent company. Accordingly, Zahid Abbas and Jacob Hansen have stepped down from their Executive positions on the main board with immediate effect and will remain with the Group as Head of Trading and Chief Operating Officer respectively. This reorganisation will accelerate our commitment towards ensuring that our Board composition is in line with best practice corporate governance guidelines whilst not reducing our operational capabilities. Furthermore, we are seeking an additional independent Non-Executive Director with a complementary skillset to that already to be found on the Board.

AGM

The Notice of AGM to be held in Guernsey on 30 June 2020 was sent to shareholders on 3 May 2020. With the Covid-19 restrictions in place it is not expected that shareholders will be able to attend the Meeting in person and the Company encourages them to ensure that their proxy votes are returned.

Enquiries:

Woodbois Limited

Paul Dolan - Chairman and CEO

www.woodbois.com

+44 (0)20 7099 1940

Canaccord Genuity (Nominated Adviser and Broker)

Henry Fitzgerald-O'Connor

James Asensio

Thomas Diehl

+44 (0)20 7523 8000

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June 11, 2020 02:01 ET (06:01 GMT)

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