Anglo African Agriculture release update on Kenyan business

Comarco port
Comarco Port in Mombasa, Kenya. Photo: Comarco Group

The Board of Anglo African Agriculture Plc (AAAP) have announced good progress in its operations and announces that it expects to release full year results mid-February 2019.

As announced on 30 August 2018, Comarco’s wholly owned subsidiary, Touchwood Investments Ltd’s major asset is a 4.75-acre strip of land at the Comarco port in Mombasa, Kenya, which a recognised global real estate consultant has recently valued at US$12 million (the “Touchwood Property”). As security for AAAP’s previously announced loan of US$1 million to the Comarco group, should this loan not be repaid, AAAP has the right, for a nominal consideration, to exercise an option to acquire 100% of Touchwood.

The approval by the Kenya Port Authority required for the construction of the LPG facility on the Touchwood Property is expected to contribute significantly to Comarco group revenues. The long-term lease provides for both base rentals and usage charges. This LPG facility is expected to develop into a major supply point for Kenya as a whole and raises the likelihood of other associated logistics opportunities for the Comarco group.
The Board is extremely pleased with this development and will keep AAAP’s shareholders fully appraised of the progress regarding this LPG facility with regular updates over the coming weeks. In addition to this, the Company continues to work with Comarco to help develop its future which the Board believes will bring additional value to AAAP.

David Lenigas, Non-Executive Chairman, commented;

“Turning Dynamic Intertrade (Pty) Ltd as well as our 46.8% owned subsidiary, Dynamic Intertrade Agri (Pty) Ltd, around to profitability has been a longer than expected task but I am delighted that we have now achieved this. This is a very significant milestone for the Company. We also believe that our relationship with Comarco will be highly remunerative to shareholders and it is incredibly exciting to now have one of the world’s largest LPG traders building an LPG terminal on the port itself. We continue to believe that theComarco Port offers huge potential and opportunities for AAAP in the current environment of global uncertainty. Ports are strategic global infrastructure and offer consistent long-term rewards.”

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