Feronia Inc. Announces US$17.5 Million Private Placement of Common Shares

TORONTO, ONTARIO--(Marketwired - Sept. 25, 2017) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) is pleased to announce that it has entered into a subscription agreement for the private placement (the "Private Placement") of US$17.5 million of common shares in the capital of the Company ("Common Shares") with Straight KKM 2 Limited ("KKM"). KKM is a newly formed entity which is owned by a consortium consisting of a number of funds managed by Kuramo Capital Management, LLC ("Kuramo"), as well as Kalaa Mpinga, a successful Congolese entrepreneur, though his holding company Mafuta Investment Holding Limited.

Proceeds from the Private Placement shall be used for working capital purposes and to provide expansion capital for the Company's palm oil business in the Democratic Republic of the Congo.

Mr. Frank Braeken, Chairman of Feronia, commented: "As a leading investor in sub-Saharan Africa, Kuramo is focused on capturing the tremendous growth opportunity the region has to offer. Kuramo's investment in Feronia, together with the involvement of Kalaa Mpinga, brings considerable expertise and experience to the Company, highlights the operational and commercial progress we are making and underlines the opportunities which lay before us."

Mr. Walé F. Adeosun, Founder and Chief Investment Officer of Kuramo Capital Management commented: "We are looking forward to working with the existing shareholders and management of Feronia to build a great agri-business in Africa; we particularly appreciate the opportunity of working, once again, with CDC Group with which we have had previous co-investments. CDC Group's approach to investing in Africa in order to create jobs and make a lasting difference to people's lives supports our view on how to build long-term value for investors."

Mr. Kalaa Mpinga, Founder and Chief Investment Officer of Mafuta Investment Holding Limited commented: "We hope that this investment draws attention within the local and international community as to the great potential of the DRC and, in particular, its agricultural sector. Feronia is playing a leading role in helping the DRC regain self-sufficiency in the supply of palm oil to its vast and rapidly growing population of over 80 million people, thereby replicating the success of many other African countries which have revitalized their palm oil industries."