- Land and water assets developer Alterra (1AG) is set to undertake a $3.7 million capital raising consisting of a placement and entitlement offer
- Under the placement, more than 46.3 million fully-paid ordinary shares will be issued to major shareholder Sandon Capital, Pendulum and professional and sophisticated investors
- Shares will be priced at 4 cents to raise $1.85 million
- Alterra will then undertake a one-for-five pro-rata non-renounceable entitlement offer to raise the remaining $1.85 million
- The company will use the money from the capital raising to fund the next stage of its avocado project and pursue opportunities across the agriculture sector
- Shares in Alterra are up 4.65 per cent and are trading at 4.5 cents
Land and water assets developer Alterra (1AG) is set to undertake a $3.7 million capital raising consisting of a placement and entitlement offer.
The company entered a trading halt on May 11 but did not disclose how much it intended to raise or what it would use the funds for.
Placement
Alterra has received firm commitments from major shareholder Sandon Capital, Pendulum and professional and sophisticated investors to raise $1.85 million.
All up, 46,305,303 fully paid new ordinary shares will be issued at a price of 4 cents, representing a seven-per-cent discount to Alterra’s 30-day volume-weighted average price.
Shares are expected to settle on May 13 and be issued on May 14.
Entitlement offer
Alterra will raise the remaining $1.85 million via a one-for-five pro-rata non-renounceable entitlement offer.
The offer will be partially underwritten by Penagri Holdings, which holds a 19.9 per cent interest in Alterra.
The offer will open on May 21 and close on June 25. Shares will settle on June 29 and begin trading on the ASX on July 1.
Alterra will use the money from the capital raising to fund the next stage of its avocado project in Western Australia and pursue opportunities across the agriculture sector.
Shares in Alterra are up 4.65 per cent and are trading at 4.5 cents at 1:57 pm AEST.