- Australian Dairy Nutritionals (AHF) is set to raise $4.5 million through a placement to IJ Funds Management
- The money will be raised through the issue of over 69.5 million stapled securities at 6.47 cents, which is roughly in line with AHF’s last closing price of 6.5 cents on March 9
- AHF plans to use the money to expand distribution opportunities in Asia and market its products following the launch of an infant formula range
- Before it went into a trading halt, AHF shares last traded 6.15 per cent lower at 6.1 cents on March 10
Australian Dairy Nutritionals (AHF) is set to raise $4.5 million through a placement.
The company entered a trading halt before quickly announcing it executed a deal with IJ Funds Management to raise $4.5 million.
The money will be raised through the issue of over 69.5 million stapled securities at 6.47 cents which is roughly in line with AHF’s last closing price of 6.5 cents on March 9.
Under the placement terms, Australian Dairy Nutritionals may request the funds from IJ FM within the next 60 days. If it doesn’t do so by the expiry date, it will be deemed to have made a request for the subscription funds on the expiry date.
After AHF requests the funds, IJ FM will have five days to pay the subscription funds. At this stage, the company expects to issue the funding request mid this month.
“We appreciate IJFM’s confidence in the group’s future prospects particularly in light of the recent announcements that the group’s infant formula ranges will be sold nationally in Chemist Warehouse stores and, the appointment a tier-one distributor for the cross-border eCommerce (CBEC) channel in China,” CEO Peter Skene said.
Australian Dairy Nutritionals will use the funds for distribution of its products to Asia (including marketing and promotional activities), investing in inventory to support future and organic A2 infant formula ranges in Chemist Warehouse, and for working capital and transaction costs.
In addition to the placement, IJ FM will provide consultancy services for the expansion of AHF’s business in Asia. It will provide these services for six months once the placement is completed and will charge a $75,000 fee per month.
The AHF Board believes by the end of the six months, IJ FM would have helped it establish further distribution arrangements in Asia, advised on logistics and worked with its marketing team for multi-channel marketing and promotion campaigns in China.
Before it went into a trading halt, AHF shares last traded 6.15 per cent lower at 6.1 cents on March 10.