Investors have backed Wide Open Agriculture (ASX: WOA) in its growth plans with the company revealing a $7 million placement and a $1.5 million share purchase plan.
Wide Open has received binding commitments from sophisticated and institutional investors, which will scoop up 7.7 million shares at $0.90 each.
Existing shareholders will have an opportunity to participate in a $1.5 million share purchase plan at the same issue price.
The $0.90 issue price represents an almost 16% discount to Wide Open Agriculture’s closing share price on Thursday 1 October of $1.07.
Wide Open managing director Ben Cole said the company was “delighted” with the outcome of the placement and the support from new and existing shareholders with bids received in excess of what was offered.
“It demonstrates the belief the company is positioned to grow alongside the rapidly expanding base of conscious food consumers and regenerative farmers.”
“Our highly capable experienced team is now ready to grow the company, maximise shareholder return and scale our positive impact,” Mr Cole added.
Multi-pronged growth strategy
Funds from the placement and share purchase plan will go towards designing, building and operating a proposed lupin protein manufacturing facility.
This protein will be used in Wide Open’s Dirty Clean Food branded products and potentially sold to third party ingredient or consumer product companies.
Proceeds will also go towards designing, building and operating a commercial-scale oat milk facility in WA.
Similar to the lupin protein, the oat milk will be sold under the Dirty Clean Food brand and private label customers.
Funds raised will also be used in generating a marketing strategy and developing a farming system for large-scale beef, lamb, and poultry operations. These will be sold online and supermarkets nationally.
Wide Open currently sells its regeneratively farmed, ethically sourced and sustainably produced food online and via various supermarkets throughout WA.
The company plans to expand into national and international markets.