Regenerative food and agriculture company, Wide Open Agriculture (ASX: WOA) has announced a $3 million capital raise in the form of a single tranche placement to institutional and sophisticated investors.
Wide Open Agriculture will issue 11.1 million new shares at an issue price of $0.27 per share – an 18.2% discount to its closing share price on 29 May, the last trading day before its self-imposed trading halt.
According to the company, the placement was strongly supported by existing shareholders, and also introduced several new high net-worth investors to its register.
Settlement of the placement is expected to be completed by 12 June 2020, with Wide Open Agriculture asserting it will use the funds to achieve scalability and to execute a systematic and targeted growth strategy aimed at health-conscious consumers – one of the fastest-growing market niches domestically and overseas.
“Demand for the placement was significant and provides strong validation of the company’s growth strategy to increase revenue and launch additional products for its fast-growing conscious customer base,” the company said.
Capitalised for growth
Currently, Wide Open Agriculture is Australia’s leading listed regenerative food and agriculture company, focusing on health-conscious consumers and marketing its Dirty Clean Food brand food products in Australia and South-East Asia.
Products are chosen based on their market potential and the positive impact they deliver to farmers, their farmland and regional communities. The company operates under what it calls a Four Returns framework that seeks to deliver measurable outcomes on financial, natural, social and inspirational returns.
With cash reserves now boosted, Wide Open Agriculture said it is well funded to execute a “systematic and targeted growth strategy” while generating “sustained shareholder value in 2020 and beyond”.
As part of this, the company intends to focus on accelerating domestic and overseas sales of regenerative meat, expand and diversify its product offering online and launch oat milk and plant-based protein products for Australian and global markets.
“The overwhelming demand from institutional and sophisticated investors is a strong endorsement of Wide Open Agriculture’s execution to date, but also demonstrates the belief that the company is positioned to grow alongside the rapidly expanding base of conscious food consumers and regenerative farmers,” Wide Open Agriculture managing director Ben Cole said.
“Our highly capable, experienced team is now ready to grow the company and maximise shareholder return and scale our positive impact,” he added.