In April 2016, FirstFarms A/S and AP Pension entered a letter of intent regarding a long-term strategic framework agreement about agricultural land and buildings in East Romania, cp. FirstFarms' company announcement no. 4/2016 of 21 April 2016.
The legal foundation for a final agreement is almost in place and only few elements remain, which are under negotiation. The process, especially about the Romanian part of the agreement, has been slow and characterised by high complexity. Thus, the final date for signing of the framework agreement cannot yet be determined.
FirstFarms will be provided with DKK 125 million to the continued growth, when the agreement is carried out completely, and will at the same time achieve a profit before tax of approx. DKK 40 million at the final transfer after 12-15 months from signing of the framework agreement.
The result effect of the agreement with AP Pension is not recognised in the company's expectations for 2017.
Invest in sustainably production of food within EU
At the end of November 2017, FirstFarms A/S will offer issuance of new convertible bonds for up to DKK 70 million according to the authorisation in item 5.6 in the Articles of Associations. The purpose of the bonds is a combined supplement of the company's cash resources for the continued implementation of the growth strategy in several of the existing business areas, with a special focus on the company's new business area of pig production. Further information will follow.
Best regards,
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com or
contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
