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- Organic phosphate development company Fertoz (FTZ) receives firm bids to carry out a $5 million share placement
- The money will be raised through the issue of more than 33.3 million shares to sophisticated and professional investors at 15 cents
- Fertoz will use the money to accelerate development of its Fertoz Carbon division and expand its organic phosphate team in North America
- Fertoz has ended the day eight per cent in the green with shares trading at 27 cents
Organic phosphate development company Fertoz (FTZ) has received firm bids to carry out a $5 million share placement.
The company entered a trading halt on July 6 but did not disclose how much it intended to raise or what the money would be used for.
The money will be raised through the issue of 33,333,333 shares to sophisticated and professional investors at 15 cents.
This price represents a 0.6 per cent discount to the 15-day volume-weighted average price of 15.1 cents.
The placement will be undertaken in two phases with phase one issuing up to 20 million shares to raise $3 million.
Phase two, which is subject to shareholder approval, will issue 13,333,333 shares to raise the remaining $2 million.
Fertoz will use the money to accelerate development of its Fertoz Carbon division, expand its organic phosphate team in North America and add Australian carbon specialists.
Executive Chairman Patrick Avery is pleased with the support received and is looking forward to expanding its team.
“Our carbon division is an exciting growth opportunity for Fertoz, and we are pleased to receive strong support from new and existing shareholders to enable use to accelerate its development,” Mr Avery said.
“In addition, completing this $5 million placement will enable us to grow our sales team in North America, and it is important to us to continue to scale up our organic fertiliser operations as the foundation of our business across multiple regions.”
Fertoz has ended the day eight per cent in the green with shares trading at 27 cents in a $46.02 million market cap.
