Straight KKM 2 Limited entered into a definitive purchase agreement to acquire 76.2% stake in Plantations et Huileries du Congo s.a.r.l. from Feronia Inc. (TSXV:FRN) on July 20, 2020. Under the terms of the Agreement, the purchase price for the Purchased Assets shall consist of (i) a cash payment of $0.5 million to be held and utilized by E&Y for the payment of costs relating to the transactions contemplated by the Purchase Agreement and the BIA Proceedings (ii the assumption of the indebtedness and obligations owing to the Feronia senior lenders; and (iii) the assumption of the indebtedness and obligations of the Feronia subsidiary Feronia Maia Srl owing to CDC Group Plc and KN Agri LLC, an affiliate of Straight KKM 2 Limited. Completion of the transactions is subject to a number of conditions, including court approval of the BIA Proceedings. The independent directors of Feronia unanimously approved the transaction. As on September 10, 2020, the transaction was approved by the Supreme Court of British Columbia in Bankruptcy and Insolvency. The transaction is expected to close on or before September 7, 2020. As on September 10, 2020, the transaction is expected to close before October 6, 2020. Ernst & Young Inc. and Ernst & Young Orenda Corporate Finance Inc. acted as independent financial advisor to Feronia.