Australian Dairy Farms Group (ASX:AHF) has received $3 million from an oversubscribed institutional placement to fund the $2.8 million purchase of a dairy farm and livestock in Victoria.
The funds were raised through the issue of 12 million securities priced at $0.25 each, a 13.85% discount to the 15 traded days VWAP.
The Brucknell No.3 Farm adjoins the Group’s existing Brucknell No 2 Farm and is expected to be earnings per share accretive on a full 12 month basis at current milk prices.
It has 139 hectares of land over two separate titles, existing buildings, water licences for stock irrigation as well as existing livestock.
Following the acquisition, the company is targeting annual milk production in excess of 10 million litres from the combined farms.
It is also assessing further acquisitions with a number of other farms in the region at various stages of due diligence.
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