RLF AgTech Ltd (ASX:RLF) has secured $4.5 million in an institutional placement, with the company set to use the funds mainly for working capital as it pushes ahead with commercial execution.
Proceeds would be used predominantly to buy raw materials, secure inventory and fulfil customer pre-orders, positioning the business to respond to near-term demand.
RLF AgTech is an Australian crop nutrition company focused on products aimed at lifting farm productivity, crop quality and soil performance.
The company develops and manufactures liquid fertilisers and seed treatments designed to improve nutrient uptake, support early plant growth and drive yield outcomes across broadacre and horticultural farming systems.
The placement was priced at 6.5 cents per share and drew binding commitments from sophisticated and professional investors. RLF said the raise was completed at a 7.1% discount to its last closing price and a 1.3% discount to its 15-day VWAP.
Working capital to back commercial rollout
RLF said the new capital would also support inventory and supply chain requirements more broadly, help advance joint venture opportunities and underpin what it described as a fully funded pathway to commercialisation and profitability.
The placement will result in the issue of 69,230,770 new shares, representing about 14.8% of current shares on issue, with the shares to be issued under the company’s existing placement capacity.
Chair Ben Barlow said strong support for the raising reflected investor backing for the company’s strategic direction under its new leadership team, while CEO Stuart Upton said the funding gave RLF the financial capacity to execute its commercial strategy, convert pipeline opportunities into revenue and scale strategic partnerships.
"This capital raise provides RLF with the financial firepower to execute our commercial strategy with confidence and speed. We have successfully completed the restructuring phase, optimised our cost base, and built a strong foundation for growth. With working capital now secured to fulfill customer pre-orders and fund operational priorities, we can focus relentlessly on converting a growing pipeline to revenue, scaling our strategic partnerships, and delivering on our pathway to profitability. This funding allows us to act decisively and execute on the significant market opportunities immediately in front of us," Upton said.
More about RLF
RLF's formulations are underpinned by more than 30 years of technical and agronomic experience, supported by field research and tailored for a wide range of crop types.
In Australia, the company has built a national footprint through more than 1220 retail and wholesale distribution points across key agricultural regions. Its LiquaForce business in Queensland is a core part of domestic operations, strengthening both manufacturing capacity and on-farm service capability.
Offshore, RLF has an established presence in China through wholly owned manufacturing and distribution facilities and is pursuing broader growth opportunities across Asia as demand for advanced crop nutrition products increases.
The company is also positioning its technology around more sustainable farming practices, with a focus on improving fertiliser efficiency and supporting soil health. Through its Accumulating Carbon in Soil System, RLF is targeting lower reliance on conventional fertilisers while helping build soil organic matter and more resilient farming systems.