- Land and water assets developer Alterra (1AG) will undertake a $5.9 million capital raising to fund the next stage of its Carpenters avocado project in WA
- Specifically, the money will be used to progress the planting of the stage three extension of the existing avocado orchard at the project
- Of the $5.9 million, $1 million will be raised under the placement with 69 million fully-paid ordinary shares on offer at a price of 1.4 cents
- The remaining $4.9 million will be raised via an entitlement offer with eligible shareholders able to subscribe for one new share for every one held at a price of 1.4 cents
- Alterra is up 16.7 per cent on the market with shares trading at 1.4 cents at market close
Land and water assets developer Alterra (1AG) will undertake a $5.9 million capital raising to fund the next stage of its Carpenters avocado project in WA.
Specifically, the money will be used to progress the planting of the stage three extension of the existing avocado orchard at the project.
The final area may vary depending on weather conditions, increased labour costs or the completion of alternative financing agreements.
The capital raising will consist of a $1 million placement and a $4.9 million entitlement offer.
Alterra has already received firm commitments from its existing major shareholders, PenAgri Group, Sandon Capital and Emanuel Exports, to subscribe for 69 million fully-paid ordinary shares at an issue price of 1.4 cents.
This price represents a 15.6 per cent discount to Alterra’s 30-day volume-weighted average price.
The placement will be followed by a pro-rata non-renounceable entitlement offer with eligible shareholders able to subscribe for one new share for every one held at an issue price of 1.4 cents.
Sandon Capital, the PenAgri Group and Emanuel Exports have committed to subscribe for roughly $2 million under the offer.
Any shortfall will be partially underwritten by PenAgri who have committed to underwrite the offer up to $2.16 million.
The offer will open on June 22 and close on July 13 with shares to be issued on July 20.
Alterra was up 16.7 per cent on the market with shares trading at 1.4 cents at market close.