A share purchase plan launched by regenerative food and farming company Wide Open Agriculture (ASX: WOA) has more than doubled its original targeted amount to close with a total $4.09 million in application funds.
Launched in mid-October, the plan offered eligible shareholders the opportunity to purchase Wide Open Agriculture ordinary shares at $0.90 each without incurring brokerage or transaction costs.
Shares were available in parcels of between $500 and $30,000.
The company received strong interest from existing shareholders which exceeded the plan’s original target of $1.5 million and may result in a discretionary scale-back of applications and reduced share parcel size per applicant.
Wide Open Agriculture proposes to issue and allot 1.66 million new shares by 10 November.
Proceeds from the share purchase plan will be joined with $7 million in funds from an October placement which was strongly supported by a number of existing shareholders including the company’s sixth largest shareholder which is an undisclosed European impact-investment family office.
Managing director Ben Cole said the combined capital raising exercises puts the company in a strong position to accelerate its growth strategy.
“[This placement] has secured interest from new and existing investors who recognise the value in our company,” he said.
“It demonstrates the belief that [we are] positioned to grow alongside the rapidly-expanding base of conscious food consumers and regenerative farmers.”
The total $11.09 million from the share purchase plan and placement will be used to fund the design, build and operation of Wide Open Agriculture’s planned new facilities which include a pilot-scale lupin protein manufacturing plant and a commercial-scale oat milk factory.
The lupin protein will be used in the manufacture of products under the Dirty Clean Food brand and also sold to third party ingredient and consumer product companies.
The oat milk factory will produce regenerative oat and other plant-based milks for the Dirty Clean Food brand and private label customers.
Money will also be put towards the development of a sales and marketing platform and for general working capital purposes.