FERONIA ANNOUNCES INTENTION TO MAKE A NORMAL COURSE ISSUER BID
TORONTO, ONTARIO – August 26, 2011: Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) today announced that it has filed a notice of intention to commence a normal course issuer bid with the TSX Venture Exchange (the “TSXV”). Under the bid, which is subject to acceptance by the TSXV, the Company will have the right to purchase for cancellation up to a maximum of 10% of common shares in the capital of the Company (the “Common Shares”) that comprise the Company’s Public Float (as such term is defined in the TSXV Corporate Finance Manual) through the facilities of the TSXV.
There are a total of 144,901,500 Common Shares issued and outstanding as of the date hereof. Management of the Company will determine the actual number of Common Shares that may be purchased and the timing of any such purchases, subject to compliance with applicable TSXV rules. Purchases made pursuant to the bid will be made in the open market through the facilities of the TSXV and the price that the Company will pay for any such Common Shares will be the market price at the time of the acquisition.
The Company is proposing to commence the bid on or about September 6, 2011 and the bid shall terminate on the earlier of: (a) September 6, 2012; (b) the date upon which the Corporation completes its purchases under the normal course issuer bid; and (c) such date on which the Corporation gives notice of termination of the normal course issuer bid to the TSXV. The Company has not purchased any Common Shares during the previous year pursuant to any issuer bid. The Company currently expects that the bid will be conducted by National Bank of Canada.
The Company intends to make the bid because it believes that (a) the Common Shares may be undervalued from time to time in relation to its current and future business prospects, and (b) the Common Shares may become available during the period of the bid at prices that would make the purchase of such Common Shares for cancellation an appropriate use of available funds and in the best interests of the Company and its shareholders.
Chairman Ravi Sood commented “Management and the Board of Directors of the Company believe there are numerous opportunities to profitably invest the Company’s resources in its operations. However, given the recent volatility in markets we have chosen to put in place a normal course issuer bid so that we are in position to make accretive share re-purchases if deemed to be in the best interest of long-term shareholder value.”
About Feronia Inc.
Feronia Inc. is a large-scale commercial farmland and plantation operator in the Democratic Republic of the Congo (“DRC”). The Company uses modern agricultural practices to operate and develop its oil palm plantations and arable farming business division. Feronia believes in the immense agricultural potential of the DRC for high-quality foodstuffs and edible oils given its ideal climate, excellent soil and highly skilled and experienced workforce. Feronia’s management team is comprised of senior agriculturalists with extensive experience in managing both plantations and large-scale mechanized farming operations in emerging markets. Feronia is committed to sustainable agriculture, environmental protection and providing support for local communities. For more information please see, www.feronia.com.
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include without limitation, statements regarding the stated use of proceeds; plan of operations and comparative advantages; and benefits of this investment. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, regulatory risks, risks inherent in foreign operations, commodity prices, competition, and investments having no history of operations. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.