Farm Lands of Africa, Inc. - FORM 10-K - XML - IDEA: XBRL DOCUMENT - January 20, 2012

NOTE 5 – INVESTMENTS

On July 29, 2011, the Company entered into a cost purchase agreement in which it agreed to acquire twenty four million and five hundred thousand shares of common stock of Craven House Capital plc (formerly AIM Investments plc), an Investment Company based in London, England, for $500,000 in cash. The twenty four million and five hundred thousand (24,500,000) shares of common stock represented approximately 8.7% of Craven House Capital plc’s outstanding equity. In addition to the stock, the Company received twenty four million and five hundred thousand warrants to subscribe for additional stock in Craven House Capital plc at an exercise price of 1.5pence per share of common stock. The warrants are valid for the period of three years commencing six months after the original purchase date.

At September 30, 2011, the Company evaluated the fair value of its investment in Craven House Capital plc and recognized an unrealized loss of $65,096 in connection with its fall in value.