PERTH, AUSTRALIA: Plant nutrition company RLF AgTech Ltd has today commenced trading on the Australian Securities Exchange (ASX) under the ticker code ‘RLF’ following a A$8.5 million Initial Public Offering (IPO).
The IPO raised A$8.5 million via the issue of 42.5 million shares at A$0.20 per share with Discovery Capital Partners as lead manager. Based on the IPO listing price, RLF AgTech has a market capitalization of A$37.0 million. RLF opened its offer on 18 February 2022 and closed it on 3 March 2022.
The IPO was supported by a number of Australian and overseas institutions and family offices. RLF combines plant science with advanced chemistry and manufacturing processes to produce high-quality plant nutrition products for commercial agriculture. The Company’s Plant Proton Delivery Technology (PPD) enables farmers to grow higher-yielding, better quality, and more nutritious produce.
Independent trials have shown that RLF’s PPD Tech can deliver a typical 10-30% yield increase, with demonstrated ROIs of 200%-1,000%+ to the farmer. RLF’s Plant Nutrition Products have been demonstrated to improve the quality of produce and improve soil carbon and condition.
Fertiliser prices boom due to ongoing conflict between Russia and Ukraine Due to the ongoing conflict between Russia and Ukraine, the price of fertiliser is reaching all-time highs and farmers are struggling to keep up with the cost of production. Ukraine has deposits of key fertiliser ingredients including potash and urea, and Russia is the world’s biggest fertiliser exporter.
In addition, trade sanctions with Russia and logistics constraints in Ukraine have severely impacted the supply of fertiliser ingredients.
As a result of the tumultuous conditions, many agricultural producers have seen a pike in input costs and general upward price pressures. This creates an enormous opportunity for RLF AgTech as growers look to cut back on soil applied nitrogen, phosphorus, and potassium (NPK) fertiliser.
RLF’s PPD Tech can been used to reduce NPK fertiliser inputs by around 20% whilst maintaining and increasing yield. Additionally, RLF experiences the commercial advantages of being a producer of specialty plant nutrition products, which have less direct competition, with strong pricing power and high gross margins.
The company intends to use the funds raised from the Offer to execute a number of strategic growth initiatives including expanding the Company’s global sales and marketing teams, increasing production capacity (plant and equipment), progressing the RLF Carbon Initiative, working capital, and IPO-related expenses.
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