Duxton Farms Raises A$4.55M and Launches Discounted Share Plan for Investors
Duxton Farms has completed a A$4.55 million placement and announced a discounted Share Purchase Plan to fund its merger and development projects.
- Placement raised A$4.548 million via 3.64 million new shares at $1.25 each
- Funds to support merger cash component, development projects, and water entitlements
- Share Purchase Plan offers existing shareholders up to A$30,000 at a 1.6% discount
- SPP opens 7 November and closes 21 November 2025
- SPP is non-underwritten with potential scale-back at company’s discretion
Placement Completion Bolsters Capital
Duxton Farms Ltd (ASX – DBF) has successfully settled a fully underwritten placement, raising A$4.548 million through the issuance of 3,638,400 new shares priced at $1.25 each. This capital injection marks a significant step in the company’s strategic funding efforts, providing liquidity to support its ongoing merger activities, development projects, and acquisition of additional water entitlements essential for its agricultural operations.
Strategic Use of Proceeds
The proceeds from the placement will primarily finance the cash component of Duxton Farms’ merger, a move that could reshape its asset base and operational scale. Beyond the merger, the funds will also underpin existing development initiatives and secure water rights, a critical resource in the agricultural investment sector. These targeted uses suggest a focused approach to growth and resource management amid evolving market conditions.
Share Purchase Plan Offers Discounted Entry
In addition to the placement, Duxton Farms is launching a Share Purchase Plan (SPP) aimed at existing shareholders registered as of 29 October 2025. Eligible investors across Australia, Hong Kong, New Zealand, Singapore, and Switzerland can subscribe for up to A$30,000 worth of new shares at a price of A$0.835 per share, representing a modest 1.6% discount to the recent five-day volume weighted average price. The SPP opens on 7 November and closes on 21 November, offering shareholders a chance to increase their stake on favourable terms.
Non-Underwritten Plan with Potential Scale-Back
Unlike the placement, the SPP is not underwritten, meaning the company does not guarantee full subscription. Duxton Farms reserves the right to scale back applications if demand exceeds the 30% cap of existing shares on issue. This introduces an element of uncertainty for shareholders considering participation, though it also reflects prudent capital management to avoid excessive dilution.
Looking Ahead
Shareholders will receive detailed information in an upcoming booklet expected by 7 November, outlining terms and conditions to inform their investment decisions. The company’s clear communication and structured capital raising approach underscore its commitment to balancing growth ambitions with shareholder value preservation.
Bottom Line?
Duxton Farms’ capital raise and SPP set the stage for strategic expansion, but shareholder uptake will be key to watch.
Questions in the middle?
- How will the merger impact Duxton Farms’ financial performance and asset portfolio?
- What level of participation will the Share Purchase Plan attract from eligible shareholders?
- Could the company’s discretion to scale back SPP applications affect shareholder sentiment?
