- Fertoz (FTZ) has topped up its coffers with just over $1.5 million through an oversubscribed rights issue
- The organic fertiliser producer issued more than 30 million shares at 5 cents each, through a one-for-seven non-renounceable rights issue
- Funds were used to purchase in-house granulation equipment, which will reduce operating costs
- Following the news, shares in Fertoz dropped 16.67 per cent to trade at 5.2 cents each
Organic fertiliser producer Fertoz (FTZ) has raised $1.519 million through an oversubscribed, one-for-seven non-renounceable rights issue.
Just over 30.3 million new shares were issued for the placement at a price of 5 cents, around half of which were under the shortfall.
Company directors have applied for 1.6 million shares, raising approximately $80,250, pending shareholder approval.
The Fertoz organic fertiliser range is produced from phosphate taken from rock resources. Its operation is fully vertically integrated — from mining phosphate, grinding and packaging, to the marketing of its FertAg product.
According to Fertoz, the funds raised will be used to buy in-house granulation equipment, which will reduce the cost of production of many of its fertilizer blends. The money will also help finalise third party accreditation of the company’s carbon footprint and facilitate the move to becoming carbon neutral.
Executive Chairman Pat Avery said the company was looking forward to a period of greater productivity thanks to the warmer weather in Montana, where the company granulates its fertiliser blends
“Importantly, the weather is improving, so even though we have previously been hampered with deliveries, and one of our contract granulators has experienced mechanical delays, we are getting back on track with deliveries,” Avery said.
“The Fertoz team is now intently focused on the spring selling season.”
Fertoz’s share price dropped 16.67 per cent off the back of this announcement, to trade for 5.2 cents at market close on Tuesday, April 7.