Terragen to list on ASX, aims to shake up farming sector with microbial soil and animal health technologies
Terragen’s technology is based on naturally occurring micro-organisms.
Queensland-based ag-biotech company Terragen Holdings is preparing to list on the Australian Stock Exchange this week following the closing of a $20 million initial public offering to retail and institutional investors.
The company was aiming to attract subscriptions for up to 80 million new shares at $0.25 each to invest in further development of its core products which address soil condition and animal nutrition without relying on chemical-based fertilisers, pesticides and antibiotics.
The offering – fully-underwritten by Bell Potter Securities and Evans Dixon Corporate Advisory – closed on 21 November.
Terragen manufactures a range of biological products at a 575-square metre integrated manufacturing and research and development facility in the Coolum Eco Industrial Park on Queensland’s Sunshine Coast.
Manufacturing focuses on microbes to address soil health and help boost the growth, quality and resilience of farm production animals.
The company currently has two products on the market in Australia and New Zealand – “Great Land” biological soil conditioner and “Mylo” microbial feed supplement – and is also developing veterinary medicines for dairy cattle and other animals.
Proceeds from the offering will be used to further commercialise these products within farming communities in Australia and New Zealand.
In Australia, Terragen generates revenue from the sale of Great Land and Mylo through a retail agency distribution network launched in February which has already signed 16 agents comprising 68 separate retailers.
In New Zealand, the company sells direct to farmers.
The capital is also expected to fund opportunities for entrance into markets within the US and the European Union.
The company said it may conduct additional future equity raisings to further support its growth strategy.
Farming’s future
Terragen aims to develop products which improve agricultural sustainability and productivity by using core micro-biome technologies.
Chairman Samuel Brougham said the company provides an “important alternative” to chemical-based fertilisers, pesticides and antibiotics and has significant growth potential.
“Our technology is based on naturally-occurring micro-organisms and targeted to have a big impact on global agriculture,” he said.
“We [believe we are] ideally placed to aid in unlocking a new future for farming, providing a suite of biological products that form a foundation for farms using organic, chemical-free or conventional farming practices.”
Terragen aims to expand its portfolio by screening naturally-occurring microbes and using microbiome adjustments to demonstrate improved soil and plant health and animal nutrition and health.
Improvements will be characterised by accelerated growth and overall stronger, healthier and more productive plants and animals.
“We believe our biological products can help generate better outcomes for farmers with their crops and livestock and provide better environmental outcomes which will be more acceptable to consumers,” Mr Brougham said.
Terragen expects to list on the ASX on Wednesday and trade under ticker code TGH.