RLF AgTech Secures $2.42M to Accelerate Australian Expansion and Carbon Tech
RLF AgTech Ltd has successfully raised approximately $2.42 million through an Entitlement Issue and Shortfall Placement, reflecting strong shareholder confidence in its turnaround strategy and growth prospects in Australia and Asia.
- Raised $2.42 million via Entitlement Issue and Shortfall Placement
- 64% take-up from existing shareholders in Entitlement Issue
- Funds to support Australian business expansion and distribution deals
- Plans to seek ASX quotation for options issued under the Entitlement Issue
- Focus on plant nutrition and carbon sequestration technologies
Capital Raise Highlights Strong Shareholder Support
RLF AgTech Ltd (ASX: RLF), an Australian-based global plant nutrition and carbon technology company, announced it has successfully raised approximately $2.42 million through a combination of an Entitlement Issue and a heavily oversubscribed Shortfall Placement. The Entitlement Issue alone attracted $1.54 million, representing a 64% take-up by existing shareholders, while the Shortfall Placement added a further $874,000, allowing the company to reach the maximum raise permitted under its prospectus.
Backing a Turnaround Strategy with Growth Ambitions
Acting Managing Director Gavin Ball described the strong capital raise as a clear vote of confidence in RLF’s turnaround strategy. The company is leveraging this fresh capital to build its team and resources, with a particular focus on expanding its Australian operations. This follows the recent acquisition of LiquaForce, a liquid fertiliser manufacturing and sales business in Queensland, and the regaining of direct rights to operate and sell RLF products in the Australian market after the end of a previous exclusive distribution agreement.
Expanding Footprint in Asia and Australia
RLF has a well-established presence in Asia, particularly China, where it has operated since 2006 with manufacturing, sales, and distribution facilities. The company’s strategy now aims to replicate and expand this success in Australia, capitalising on its proprietary Plant Proton Delivery Technology and Accumulating Carbon in Soil System (ACSS). These technologies not only enhance crop yields and quality but also contribute to carbon sequestration efforts, aligning with growing environmental and sustainability trends in agriculture.
Options Quotation and Market Transparency
RLF also indicated its intention to seek ASX quotation for the options issued under the Entitlement Issue, pending eligibility requirements. This move is expected to provide additional liquidity and trading flexibility for shareholders. The company reaffirmed its commitment to continuous disclosure and keeping the market informed of operational progress and strategic developments.
Positioning for a Sustainable Agricultural Future
With the fresh capital injection, RLF is well-positioned to accelerate its rollout of innovative plant nutrition products that support both agricultural productivity and environmental sustainability. The company’s dual focus on enhancing crop performance and increasing soil carbon storage taps into a growing market demand for sustainable farming solutions, potentially offering long-term value creation for shareholders.
Bottom Line?
RLF’s successful capital raise sets the stage for accelerated growth in Australia and deeper market penetration across Asia’s sustainable agriculture sector.
Questions in the middle?
- How quickly can RLF scale its Australian operations post-capital raise?
- What are the timelines and prospects for securing further distribution agreements?
- How will the market respond to the potential ASX quotation of the issued options?
