Mriya Agro Public : Holding Approves Investment Plan for H2 2016

MRIYA Agro Holding has approved a plan of investment for the second half of 2016 in the amount of $15.2 million, subject to replenishing its working capital. Specifically, the company intends to allocate $12.5 million for purchase of machinery and equipment including leasing operations and $2.7 million for support and official registration of the land bank. The total sum of investments planned for 2016 is $17.2 million.

According to the Company's plan and sufficient availability of working capital, the management expects the value of this year's harvest to be $114.4 million based on the current forecast of market price. The operating cash flow for May-December 2016 is estimated at $15.9 million.

However, due to the ongoing negotiations on restructuring of the Company's debt portfolio, the issue of future replenishment of working capital remains open. If the working capital is restricted to the currently available amount of the WC Facility, MRIYA's management forecasts that this will have a negative impact on revenues and operating margin up to $7 million for the season. Under this scenario, the investment period will be postponed until late 2016 and the investment projects will be scaled down to $10 million, which will have a negative impact on the results for the 2016-2017 season.

MRIYA Agro Holding has already invested $2 million into the purchase of new equipment since the beginning of 2016. Specifically, the Company has purchased John Deere 7930 tractors and Challenger8186 No-till sowing machines. MRIYA has also made all mandatory investments in logistics and elevators and is ready for the harvest.