- Roots Sustainable Agricultural Technologies (ROO) secures firm commitments to raise $1 million to deploy its root zone temperature optimisation technology (RZTO)
- The placement comprises of just over 160 million CHESS depositary interests (CDI) issued at 0.6 cents per CDI
- Investors will receive one attaching option for every four CDIs issued at a strike price of 2 cents and an expiry date of September 30 2023
- Funds will be used to deploy Roots’ RZTO technology, business development and to further international expansion
- Roots shares are down 12.5 per cent to trade at 0.7 cents at 12:08 AEDT
Roots Sustainable Agricultural Technologies (ROO) has secured firm commitments to raise $1 million through a placement.
The placement comprises just over 160 million CHESS depositary interests (CDIs) issued at 0.6 cents per CDI, representing a 20 per cent discount to the five-day volume-weighted average price (VWAP) of 0.8 cents.
Investors will receive one attaching option for every four CDIs issued at a strike price of 2 cents and an expiry date of September 30 2023.
Subject to shareholder approval, investors will also receive three attaching options for every four placement CDI’s with a strike price of one cent and an expiry of 12 months from date of issue.
The company said it has been given approval to issue up to 175 million CDIs and around 43.7 million options, with the same issue price and expiry date, in a future placement.
Placement funds will be used to further the commercialisation of the company’s root zone temperature optimisation technology (RZTO) technology, broadening its growing international footprint and undertaking additional marketing and business development to drive sales growth.
Roots CEO, Boaz Wachtel, explained.
“The funds raised will provide the company with the necessary financial flexibility to progress a number of initiatives, expected to broaden our global footprint and increase sales,” he said.
“As we continue to witness an increased push towards net zero, there has been increased interest in our solutions. With this new funding, we are very well placed to capitalise and deliver value for shareholders.”
EverBlu Capital has acted as lead manager to the placement and will receive a 6 per cent cash fee for the total funds raised as well as one option for every one share issued.
Roots shares are down 12.5 per cent to trade at 0.7 cents at 1:53 pm AEDT.