- Roto-Gro International (RGI) has raised $2 million through a well-supported placement of 40 million ordinary shares
- Each issued share will have attaching options at a two-to-three basis, exercisable at six cents before December 31, 2023
- Roto-Gro’s placement enjoyed strong support from a wide range of domestic professional and sophisticated investors
- Proceeds from the placement will fund the global roll-out of the company’s vertical farming division
- Roto-Gro International closed 3.51 per cent in the red to trade at 5.5 cents per share
Roto-Gro International (RGI) has raised $2 million through a well-supported placement of 40 million ordinary shares.
The placement was led by Melbourne-based boutique Peak Asset Management, which is continuing to work with the company to drive shareholder value.
During the placement, the agricultural company issued new, fully paid ordinary shares to professional and sophisticated investors. Each issued share will have attaching options on a two-to-three basis, exercisable at six cents before they expire on December 31, 2023.
Roto-Gro’s placement enjoyed strong support, with the company receiving firm commitments from a wide range of high-quality domestic investors.
New shares issued through the placement should be settled by around February 26 and allotted by about March 1, 2021. However, this timetable remains subject to change.
Proceeds from the placement will strengthen Roto-Gro’s balance sheet, and fund the global roll-out of the company’s vertical farming division.
Roto-Gro International’s CEO, Michael Di Tommaso, commented that the raise is an important step for the company to achieve its ambitions in the indoor vertical farming space.
“Our focus is driving shareholder value by way of execution, specifically with respect to our ongoing partnerships and agreements, but also by fostering current and prospective market relationships, and transitioning these opportunities to revenue generators,” he said.
“We are excited to move forward with Peak Asset Management as our corporate advisors and to work diligently towards executing our business strategy,” he added.
Roto-Gro International closed 3.51 per cent in the red to trade at 5.5 cents per share at 4:10 pm AEDT.