Fertoz Ltd (ASX:FTZ) has received binding commitments to raise $2 million in an oversubscribed placement of shares to sophisticated and professional investors at 17 cents per share.
The funds raised will provide working capital to help meet the surge in demand for Fertoz products in North America.
Fertoz will also deploy funds to pursue opportunities in enhancing its logistics capability, with scope to boost shareholder value through joint ventures and/or wholly owned vertical integration.
READ: Fertoz sales rise 238% on increasing demand from organic farming sector
Fertoz achieved a revenue of more than $1.2 million in CY2017 for its FertAg business, representing a year-on-year sales growth of 238% in the twelve months ending 31 December 2017.
The company attributes the substantial increase in sales to a combination of an increase in distribution agreements and amplified interest from environmentally friendly farmers.
FertAg is made from naturally occurring minerals and is not chemically treated; as such, it works with the natural soil chemistry to digest soil acidity while providing minerals in a plant-available form.
Annual sales target of 10,000 tonnes in 2018 surpassed
Fertoz executive chairman Pat Avery said: “The success of this oversubscribed capital raise marks clear recognition of the value of Fertoz’s strategy and the company’s ability to execute.
“Fewer than four months into 2018, we have surpassed our annual sales target of 10,000 tonnes of phosphate products.
“These products enjoy a natural competitive advantage in delivering growers higher yields and improved soil health with organic natural inputs.”