Cobram Estate Olives Secures $8.1M via SPP and Shortfall Placement at $3.20 per Share
Cobram Estate Olives has successfully closed a $6.1 million Share Purchase Plan alongside a $2 million shortfall placement, fueling its US growth ambitions. The capital raise complements a recent $175 million institutional placement, underpinning the company’s strategic farmland acquisitions and olive grove developments in America.
- Completed $6.1 million non-underwritten Share Purchase Plan at $3.20 per share
- Raised additional $2 million via shortfall placement to a long-term shareholder
- Total capital raised of $8.1 million complements $175 million institutional placement
- Funds earmarked for US expansion including farmland purchase and 1,600 hectares of olive groves
- Approximately 2.5 million new shares to be issued and quoted on ASX by 7 October 2025
Capital Raising Completes Successfully
Cobram Estate Olives Limited (ASX – CBO), Australia’s leading vertically integrated olive oil producer, has announced the successful completion of its non-underwritten Share Purchase Plan (SPP), raising $6.1 million at an offer price of $3.20 per share. This initiative followed closely on the heels of a substantial $175 million institutional placement announced earlier in September, signaling strong investor confidence in the company’s growth trajectory.
In addition to the SPP, Cobram secured a further $2 million through a shortfall placement to a long-term existing shareholder who missed out on the institutional placement. This combined capital raise of $8.1 million will be used to accelerate Cobram’s expansion efforts in the United States, particularly the acquisition of additional farmland and the development of approximately 1,600 hectares of new olive groves.
Strategic Growth in the United States
The funds raised are earmarked to support Cobram’s ambitious growth strategy in the US market, where the company already operates significant olive farming assets, including over 1,000 hectares of leased and freehold properties in California. The planned expansion will enhance Cobram’s production capacity and further entrench its position as a global leader in sustainable olive farming and premium extra virgin olive oil production.
Rob McGavin, Non-Executive Chair and Co-Founder, expressed gratitude to shareholders for their support and highlighted the importance of offering retail investors the same price as institutional participants. He emphasized that the capital injection would be pivotal in accelerating the company’s US growth initiatives.
Share Issuance and Market Impact
Approximately 2.5 million new shares will be issued under the SPP and shortfall placement, expected to be allotted on 6 October 2025 and commence trading on the ASX the following day. These shares will rank equally with existing shares, ensuring no dilution of shareholder rights beyond the capital increase.
The absence of brokerage or lead manager fees on the shortfall placement is a notable cost-saving for the company, maximizing the funds available for operational deployment. Investors will be watching closely to see how the market responds to the increased share capital and the company’s execution of its US expansion plans.
Looking Ahead
With a strong balance sheet bolstered by this recent capital raising, Cobram Estate Olives is well-positioned to capitalize on growing demand for premium olive oil products, particularly in the US market. The company’s integrated model, spanning farming, milling, and marketing, combined with its sustainability credentials, offers a compelling growth story in a competitive global landscape.
Bottom Line?
Cobram’s latest capital raise sets the stage for accelerated US growth, but execution risks remain under watch.
Questions in the middle?
- What are the specific timelines and milestones for the US farmland development?
- How will the increased share capital impact Cobram’s earnings per share in the near term?
- What market conditions could affect the success of Cobram’s US expansion strategy?
