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African Potash Ltd. (AFPO)
African Potash Ltd.: Blockchain Joint Venture Agreement and proposed Change
of Name
28-Nov-2017 / 09:31 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
The information communicated within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this announcement,
this inside information is now considered to be in the public domain.
28 November 2017
AFRICAN POTASH LIMITED
("African Potash" or the "Company")
Blockchain Joint Venture Agreement and proposed Change of Name
Joint Venture
African Potash, is pleased to announce that it has entered into a Joint
Venture agreement with FinComEco Limited a subsidiary of GMEX Group Limited.
The agreement is to jointly develop and operate a range of
platforms/projects and initiatives in the agricultural commodity markets
sector in sub-Saharan Africa. This will be underpinned by the deployment of
a complete blockchain-based agricultural ecosystem solution. This
supply-to-demand chain links together smallholder farmers, small-scale
traders, brokers, storage, transportation, and commodity buyers. It will
help enable smallholder farmers to raise productivity andpotentially obtain
a better price for their produce. In the longer term, it may provide
opportunities for further income growth as well as opening alternative
added-value opportunities including broader e-commerce-enabled enterprises.
It is anticipated that demand will be driven by the provision of microloans
by the Company direct to Small Scale farmers ("SSF"). The microloans are
expected to bear interest at approximately 12% per annum, a rate which will
be a significant disrupter in the countries of operation where farmers can
pay well over double this rate. The portfolio of loans will be insured
against non-performance. All supply chain financing and transaction logging
will be by blockchain. This will offer a much more secure and cheaper
alternative to present systems where they exist. Dealing direct with the
farmer will limit government interference and cut out "the middlemen" and
thereby potentially lower costs further.
FinComEco, backed by GMEX, will ensure the purchase of agricultural
commodities grown by the SSF through the deployment of existing warehouse
receipt systems and commodity exchanges with secure payment of profit to the
farmer after the repayment of the loan and interest to the Company.
Shareholders will benefit both from the revenue from the sale of fertiliser
and other inputs direct to SSFs, as well as the sale of outputs and from
interest on the loans.
Change of Name
This joint venture with FinComEco to deploy an integrated microloan
financed, token-based, input and output trading ecosystem is a significant
step forward in our strategy to build a vertically integrated fertiliser
business from initial resource through to selling directly to the farmer.
Furthermore, it demonstrates the advantages the role of blockchain
technology-based solutions can bring to commodity trading. In light of this
significant development of the Company's strategy, the Board is proposing
changing the Company's name to reflect the technology that will be core to
its envisaged growth. A resolution to change the name of the Company to
Block Commodities Limited will be proposed at the forthcoming Annual General
Meeting, details of which will be sent to shareholders in due course. Rt.
Hon. Mark Simmonds, non-executive director of African Potash, is also
currently Chairman of FinComEco and was the former UK Foreign & Commonwealth
office Minister with responsibilities for Africa, the Caribbean, UK Overseas
Territories, International Energy and Conflict Prevention.
Hirander Misra, Founder and Deputy Chairman of FinComEco and CEO of GMEX
Group, said "We are delighted to be working with AFPO to transform the lives
of smallholder farmers across sub-Saharan Africa. Our unique collaborative
approach is delivering best-of-breed technology, standards and inputs
(including seeds, fertilisers and pesticides) coupled with agricultural
finance facilitation to link the supply to market side demand creating a
holistic agricultural value chain."
Chris Cleverly, Executive Chairman, said, "By linking agriculture to
blockchain technology, the joint venture will facilitate agricultural
value-chain efficiencies through provision of strategic value-added
services. Demand for agricultural inputs will be driven by the provision of
low cost microloans direct to Small Scale Farmers ("SSF") for them to
purchase inputs from our designated warehouses; with repayment in the form
of warehouse receipts of SSF outputs. In addition, other value-added
services such as the provision of market information, training and capacity
building will be provided, working together with FinComEco and other
appropriate partners. The blockchain system tokens are expected to generate
other e-commerce opportunities as demand evolves. This agreement represents
a further step in our strategy to build a vertically integrated fertiliser
business from initial resource through to selling, using blockchain
technology, direct to the farm. This strategy is reflected in the proposed
change of name to Block Commodities limited".
The Company will make further updates in due course.
The Directors of the Company accept responsibility for the content of this
announcement.
**ENDS**
For further information visit www.africanpotash.com [1] or contact the
following:
For further information, please contact:
African Potash Limited
Chris Cleverly +44 (0) 20 7408 9200
NEX Exchange Corporate Adviser:
Alexander David Securities Limited
David Scott - Corporate Finance +44 (0) 20 7448 9820
James Dewhurst - Corporate Broking +44 (0) 20 7448 9820
About African Potash (AFPO)
African Potash is an NEX Exchange-quoted company focussed on building a
vertically integrated platform for the mining, production and distribution
of fertiliser, primarily within Africa.
The Company operates the Lac Dinga Project in the Republic of Congo, which
is prospective for potash, a key source of potassium fertiliser, and has a
trading agreement to supply and deliver fertiliser primarily to the African
continent.
For more information please visit http://www.africanpotash.com [1]
About FinComEco
FinComEco, the financial and commodities ecosystem is fostering financial
inclusion with social responsibility in collaboration with local
stake-holders, development organisations, governments and the private sector
with the aim of improving food security and economic diversity.
The new electronic commodities exchange solution is establishing and
reinvigorating local spot exchanges and enabling trade across multiple
regions with a focus on the agricultural sector to create a holistic secure
financial system.
It includes:
- Price discovery and transparency
- Electronic warehouse receipts
- Trade finance and micro lending facilitation as a distribution hub
- Risk management and hedging
- Integrated Electronic banking and payments platform
- Standards framework
- Traceability and tracking enablement
- Capacity building and education
- Operational and technology consultancy
- Working with trusted local partners
Operational objectives include:
- Maximising the earnings potential for smallholder farmers
- Supporting smallholder farmers to thrive enabled with best of
breed-of-technology and inputs (including seeds, fertilisers and
pesticides), coupled with a unique Agri-finance business model to solve
credit and financing issues.
- Leveraging as well as enhancing current logistics, warehousing and
standards to establish a fully vitalised agricultural ecosystem efficiently
linking supply to demand.
FinComEco has proven its concept in Malawi at the Agricultural Commodity
Exchange for Africa (ACE) through GMEX Group and is establishing fully
regulated market places in other African countries and South-East Asia.
Current shareholders include GMEX Group Limited, Saescada Limited and
Houghton Street Capital Limited as well as individuals.
For more information visit www.FinComEco.com [2]
About GMEX Group
GMEX Group is a set of companies that offer sustainable and innovative
solutions for a new era of global financial markets. Providing business
expertise, the latest technology, connectivity & operational excellence
delivered through an aligned partnership driven approach. It uses its
extensive market infrastructure experience and expertise to create an
appropriate strategic master plan with exchanges, clearing houses,
depositories, registries and warehouse receipt platforms.
The Group's key business solutions enable the creation and operation of cost
effective electronic exchanges and post trade infrastructure in multiple
asset classes including equities, debt, FX, derivatives and commodities. It
operates in both developing and developed markets through the establishment
of cohesive business and technology ecosystems. GMEX offers the added
benefit of interconnection to multiple partner exchanges, to create global
networks of liquidity.
ISIN: GG00B4QYTJ50
Category Code: ACQ
TIDM: AFPO
Sequence No.: 4926
End of Announcement EQS News Service
633311 28-Nov-2017
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(END) Dow Jones Newswires
November 28, 2017 04:34 ET (09:34 GMT)
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