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- Roots Sustainable Agricultural Technologies (ROO) has raised nearly $4 million in a private placement to institutional, sophisticated and professional investors
- The company says it intends to use the funds for sales and marketing activities, operating expenses and research and development opportunities
- Approximately 179,811,397 chess depository interests (CDIs) will be issued at 2.2 cents each, a 22.9 per cent discount on the five-day volume-weighted average price (VWAP)
- Funds will also be used to further opportunities in the company’s plant-based meat division
- ROO shares are trading green up 3.7 per cent at 2.8 cents each
Roots Sustainable Agriculture Technologies (ROO) has raised $4 million in a private placement to institutional, sophisticated and professional investors.
The company says it intends to use the funds for sales and marketing activities, operating expenses, experimental greenhouse maintenance and pilots and pursuing global cannabis opportunities.
Approximately 179,811,397 chess depository interests (CDI) will be issued at 2.2 cents each, a 22.9 per cent discount on the five-day volume weighted average price (VWAP). Specifically, $3,955,851 has been raised before costs.
CDIs are a type of share developed by ASX subsidiary CHESS, giving investors the same beneficial interests in foreign companies as holding shares and funds directly on their respective foreign exchange.
Funds will also be used to further opportunities in the company’s plant-based meat division. The company says it anticipates updates in this area shortly.
Roots Executive Chairman and Chief Executive, Boaz Wachtel, said the placement gives the company financial flexibility to aggressively upscale operations.
“While the cannabis sector is promising, food security is also a major issue facing established and developing nations and demand for our technology is growing significantly,” he said.
“This is also applicable to the plant-based meat sector where our dedicated division is making some excellent progress … We look forward to updating shareholders on key growth developments in the very near term.”
CDIs will be issued to participants in three components.
53,341,384 CDIs will be issued conditional to the company’s available placement capacity under listing rule 7.1. A further 35,560,922 will also be issued pursuant to the company’s available placement capacity under listing rule 7.1a.
The remaining 90,909,091 interests will be granted following shareholder approval, which was obtained November 25.
ROO shares are trading green up 3.7 per cent at 2.8 cents each at 8:34 am AEDT.
