- RotoGro International (RGI) has received firm commitments to raise $1.53 million through a placement
- More than 38.2 million fully-paid shares will be issued to professional and sophisticated investors at 4 cents each
- Subject to shareholder approval, each share will have attaching options on a two-for-three basis
- The options will be exercisable at 5 cents each and have an expiry date of December 31, 2023
- RotoGro will use the money from the fundraise to rollout its perishable food and vertical farming divisions
- Indoor vertical farms use fine-tuned LED lighting to provide light for photosynthesis, allowing plants to grow without being exposed to pesticides
- On the back of this news, shares in RotoGro are up a healthy 30 per cent and are trading at 5.2 cents
RotoGro International (RGI) has received firm commitments to raise $1.53 million through a placement.
The company entered a trading halt last week but did not disclose how much it would be raising or what it would be using the money for.
It’s since announced it’ll issue 38,261,350 new fully-paid ordinary RGI shares to professional and sophisticated investors at 4 cents each.
The shares are expected to settle on or around November 30 and then be allocated on December 1.
Subject to shareholder approval, each share will have attaching options on a two-for-three basis, exercisable at 5 cents each and with an expiry date of December 31, 2023.
“This raise is an important step forward for RotoGro as the company welcomes a number of new shareholders to the register,” Non Executive Chairman Michael Carli commented.
RotoGro has stated that it will use the money to rollout its perishable food and vertical farming divisions.
Indoor verticals farms essentially use find-tuned LED lighting to provide optimal light for photosynthesis, allowing plants to grow healthy without being exposed to pesticides and herbicides.
The farms can also operate on less water and be built into cities for fast and easy distribution.
On the back of the successful placement news, shares in RotoGro are up a healthy 30 per cent and are trading at 5.2 cents at 3:46 pm AEDT.