- Australian Dairy Nutritionals (AHF) set to raise $4.5m through placement with IJ Funds Management
- The money will be raised through the issuance of more than 69.5 million stapled securities at 6.47 cents, roughly matching AHF’s last closing price of 6.5 cents on March 9.
- AHF plans to use the money to expand distribution opportunities in Asia and market its products after launching an infant formula line
- Prior to the trading halt, AHF shares last traded down 6.15% to 6.1 cents on March 10.
Australian Dairy Nutritionals (AHF) is set to raise $4.5 million through a placement.
The company halted trading activities before quickly announcing that it had reached an agreement with IJ Funds Management to raise $4.5 million.
The money will be raised through the issuance of more than 69.5 million stapled securities at 6.47 cents, roughly matching AHF’s last closing price of 6.5 cents on March 9.
Depending on the placement terms, Australian Dairy Nutritionals can request the funds from IJ FM within the next 60 days. If he fails to do so by the expiry date, he will be deemed to have requested the subscription funds on the expiry date.
Once AHF requests the funds, IJ FM will have five days to pay the subscription funds. At this point, the company expects to release the funding request in the middle of this month.
“We appreciate IJFM’s confidence in the group’s future prospects, particularly in light of recent announcements that the group’s infant formula lines will be sold nationwide through Chemist Warehouse and appointment of a leading distributor for the Cross-Border E-Commerce Channel (CBEC) in China,” said CEO Peter Skene.
Australian Dairy Nutritionals will use the funds for the distribution of its products in Asia (including marketing and promotional activities), investing in inventory to support future and organic A2 infant formula ranges in Chemist Warehouse, as well as for working capital and transaction costs.
In addition to the placement, IJ FM will provide advisory services for the expansion of AHF’s business in Asia. It will provide these services for six months after the placement is complete and charge a fee of $75,000 per month.
AHF’s board believes that by the end of the six months, IJ FM would have helped it establish further distribution deals in Asia, advised on logistics and worked with its marketing team on marketing campaigns. multi-channel marketing and promotion in China.
Prior to the trading halt, AHF shares last traded down 6.15% to 6.1 cents on March 10.