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Australian Rural Capital (ASX:ARC) to pocket $388K from sophisticated investor

Agriculture, Finance
ASX:ARC      MCAP $3.913M
03 March 2021 06:00 (AEST)

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Agribusiness stock Australian Rural Capital (ARC) is set to bank $388,000 after a sophisticated investor took up 1,941,936 new company shares.

The investor is a client of Henslow Melbourne, who ARC says will be paid a fee for the management of the placement.

The new shares will be issued at a placement price of 20 cents per new share and are set to be allotted on Thursday, March 4, with an application for quotation of the shares on the ASX also expected to be made on the day.

According to Australian Rural Capital, proceeds from the raise will go towards undertaking investment opportunities, working capital requirements and funding the costs of the placement.

ARC is set to use its existing placement capacity under Listing Rule 7.1 to issue the new shares and advised that no related parties took part in the placement.

Upon receipt of the funds, the company advises cash on hand will clock in at approximately $680,000.

Australian Rural Capital shares closed the session up 42.9 per cent in the green at 25 cents.

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