Alterra Ltd (ASX:1AG) is pleased to announce a capital raising of up to $3.7 million under which a company associated with Pendulum Capital Pty Limited (Pendulum), led by successful agribusiness investors and operators Peter Fogarty and Greg Harvey, will acquire up to a 19.9% stake in the Company.
Pendulum is a leading investment, management and corporate advisory firm.
The capital raising comprises a placement (Placement) at $0.04 per share to raise $1.85 million and a 1-for-5 pro-rata non-renounceable entitlement offer (Entitlement Offer) (together with the Placement, the Capital Raising) at the same price as subscribers to the Placement – $0.04 per share, to raise up to $1.85 million (before costs). The issue price represents a 7% discount to Alterra’s 30-day volume average weighted share price.
Eligible Alterra shareholders will have the opportunity to participate in the Entitlement Offer, including those that participated in the Placement. The Entitlement Offer will be open to all shareholders with a registered address in Australia and New Zealand at 5.00pm (WST) 18 May 2021 (Record Date).
The Capital Raising will fund the next stage of Alterra’s Carpenters avocado project in Western Australia’s South West. It also provides the Company with a platform to pursue other opportunities across the horticulture and agriculture sectors.
As a strategic shareholder, the Pendulum team brings decades of track record and success in agriculture investment and advisory roles in some of Australia’s biggest agriculture transactions. Alterra looks forward to tapping into this experience and expertise.
Alterra Chairman John McGlue said the Company was delighted to welcome Pendulum to the register. “Pendulum has a great track record in the agribusiness and horticulture sectors, and Alterra looks forward to their contribution as investors for the benefit of all of our shareholders.”
Outside of his agribusiness investments and advisory roles, Mr Fogarty is the founder of the Fogarty Wine Group, Margaret River’s largest wine producer with wine assets across WA, New South Wales, Victoria and Tasmania.
Mr Harvey was most recently Managing Director and CEO of the Forrest family’s Harvest Road Group food business and was previously the long-standing CEO of Interflour Group, one of Asia’s largest grain processors and agri-port operators, and part of the Salim Group.
Mr Fogarty said: “Pendulum has invested in Alterra because of its flagship Carpenters avocado project and its potential to take advantage of the abundance of opportunities in horticulture and agriculture. We look forward to working with Alterra to realise on its growth potential.”
Use of funds
Funds raised from the Capital Raising will be used primarily to accelerate development of a further 52 hectares of avocados at the Company’s flagship Carpenters Project in the Pemberton region of Western Australia and for general working capital.