RLF AgTech Secures $4.5m to Boost Australian Growth and Cut Debt
RLF AgTech has successfully raised $4.5 million through a heavily oversubscribed placement, aiming to accelerate its Australian expansion and reduce leverage by cancelling convertible notes.
- Raised $4.5 million via placement at $0.05 per share
- Placement priced at 15.3% discount to recent closing price
- Funds to expand Australian operations and upgrade manufacturing
- Convertible notes worth $0.55 million cancelled to reduce debt
- Strong demand attracted new institutional investors
Capital Raise to Fuel Expansion
RLF AgTech Ltd (ASX, RLF), an Australian plant nutrition company, has announced a $4.5 million equity raising through a placement of approximately 90.4 million new shares. The placement was heavily oversubscribed, reflecting strong investor confidence in the company’s growth strategy. Shares were issued at $0.05 each, representing a 15.3% discount to the closing price on 19 August 2025.
The capital injection is earmarked primarily for accelerating the expansion of RLF’s Australian business. This includes increasing sales and support personnel, enhancing marketing and training systems, and upgrading manufacturing facilities to meet anticipated growth in product demand. The company’s footprint already spans over 1,220 retail and wholesale distribution locations nationally, with the recent acquisition of the LiquaForce business in Queensland bolstering its manufacturing and on-farm service capabilities.
Debt Reduction and Balance Sheet Strengthening
In a strategic move to improve financial flexibility, RLF has cancelled convertible notes with a principal amount of $0.55 million by settling the principal and accrued interest. This reduction in leverage is expected to provide the company with greater balance sheet resilience as it pursues its growth initiatives.
Chairperson Ben Barlow expressed gratitude for the strong support from both existing and new institutional investors, highlighting the company’s commitment to delivering science-backed crop nutrition products that enhance agricultural productivity and sustainability.
Positioning for Sustainable Agriculture
RLF’s product portfolio focuses on advanced liquid fertilisers and seed treatments designed to improve nutrient uptake, crop quality, and soil health. Its Accumulating Carbon in Soil System (ACSS) initiative aligns with global trends toward regenerative farming and carbon sequestration, positioning the company well within the sustainability-driven agricultural sector.
Internationally, RLF maintains operations in China and is expanding across Asia, tapping into growing demand for innovative crop nutrition solutions. The fresh capital will support scaling production to meet both domestic and international demand.
Next Steps and Market Impact
The new shares are expected to settle by 29 August 2025, with trading commencing on 1 September. Investors will be watching closely to see how the company leverages this capital to deliver on its expansion plans and whether the reduction in debt translates into improved financial metrics.
Bottom Line?
RLF’s successful raise and debt reduction set the stage for a pivotal growth phase in Australian agriculture.
Questions in the middle?
- How quickly will RLF scale up production to meet rising demand?
- What impact will the convertible note cancellation have on future financing options?
- Can RLF’s sustainability initiatives translate into stronger market share?
