RLF AgTech Ltd Secures $700,000 in Funding

RLF AgTech Ltd, an Australian-based company, has successfully completed a placement of 7,000 unsecured convertible notes, raising a total of $700,000. This funding will support the company’s near-term operational priorities across both domestic and international markets.

Key Highlights of the Funding

The key highlights of the funding include:

• $700,000 raised through the issue of 7,000 unsecured convertible notes at a face value of $100 per note
• Conversion price set at $0.06 per RLF share
• Funding will support increased working capital, expansion of the Australian sales team and marketing, as well as new application equipment for LiquaForce
• Funding will also support increased inventory requirements for the China business
• The notes mature on 30 September 2025, with the company reserving the right to redeem earlier

Using the Funds

The funds raised will be used to support the company’s operational priorities, with a primary focus on inventory requirements for the upcoming March-July sales period. This short-term funding ensures the company is well-positioned to meet current demand, with the capital typically returned by July or August in line with seasonal trading cycles.

Australian Market

In Australia, the company has secured a greater number of distribution or supply agreements than initially forecast. The recent agreements have resulted in a national distribution reach that includes over 500 locations. To support these agreements, the company is investing in the deployment of sales and technical personnel, the development of marketing and agronomic support materials, and the delivery of comprehensive product training.

Chinese Market

In China, stronger-than-anticipated sales have accelerated inventory requirements for the upcoming March-July sales period. This short-term funding enables the company to meet this demand.

Equipment Upgrade

A portion of the proceeds will also be directed toward capital expenditure within the RLF LiquaForce business. Specifically, funds will be used to acquire variable rate liquid fertiliser application machinery. This equipment is expected to enhance application efficiency, reduce cost differentials compared to granular fertiliser systems, and strengthen LiquaForce’s competitive position in key Queensland markets.

Conclusion

In conclusion, RLF AgTech Ltd has secured $700,000 in funding through the issue of convertible notes. The funds will be used to support the company’s operational priorities, including inventory requirements, sales team expansion, and equipment upgrades. This funding will enable the company to meet current demand and strengthen its position in both domestic and international markets.