Kangaroo Island Plantation Timbers Ltd has established a $550,000 loan facility with Aminac Pty Ltd as Trustee for Agrarian Management Super Fund, an entity associated with the Chair of the Company, Mr Paul McKenzie, as the company said in the press release received by Lesprom Network.
The remaining directors have determined that Mr McKenzie’s proposal is more favourable than any of the alternative sources of capital available to the Company, while also being fair and on an arm’s length basis to Mr McKenzie.
Mr McKenzie’s entity has agreed to lend $500,000 to the Company in the current financial year and to provide a loan facility up to a further $50,000, at an interest rate of 8% per annum.
The Company has no other interest-bearing debts at this time and expects to repay Mr McKenzie in full before 23 December 2016.
The funds will be used to continue KPT’s progress towards its proposed Smith Bay multi-user wharf site on the north coast of Kangaroo Island.
Kangaroo Island Plantation Timbers is Australia’s only listed timber company. It manages a wholly-owned portfolio of hardwood and softwood forestry plantations on Kangaroo Island, South Australia.
