AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
Convertible notes issued to expand working capital and operational capabilities
Focus on Australian distribution growth and increased inventory for China
Funding includes machinery investment to enhance fertiliser application efficiency
RLF AgTech Ltd (ASX:RLF), an Australian agritech firm, has completed a funding round through the issue of unsecured convertible notes to institutional, professional, and sophisticated participants. The initiative is structured to support the company’s short-term operational priorities both domestically and overseas.
This strategic move comes at a time when several agriculture-focused businesses are reinforcing capabilities in supply chain management, distribution expansion, and inventory handling. The capital raised is earmarked to meet immediate business needs during peak sales months and allow the company to respond to rising demand in multiple geographies.
Enhanced Domestic Distribution and Sales Team Expansion
Within Australia, the company has experienced a broader distribution footprint than initially projected. Recent agreements have extended reach across a wide range of locations, prompting a focused expansion of the domestic sales and technical workforce.
To support these efforts, the capital will be allocated to develop marketing programs, agronomic materials, and comprehensive product training across regions. These actions are part of a broader strategy to consolidate national operations and provide localised support to distribution partners.
China Market Inventory Strengthening
Demand in the China market has advanced faster than anticipated, resulting in the need for increased inventory levels ahead of the seasonal sales window from March through July. A portion of the funds raised will be used to bolster the company’s ability to deliver in this timeline, ensuring responsiveness to wholesale and retail demand.
The company’s structured trading calendar enables capital return flows by mid-year, aligning with its operational and sales cycles. This approach provides a clear framework for managing seasonal logistics and inventory efficiency.
Capital Expenditure in Advanced Application Equipment
Another portion of the raised funds will be directed toward equipment upgrades in the company’s LiquaForce division. This includes the acquisition of machinery designed for variable rate application of liquid fertilisers. The machinery investment is expected to improve application precision and reduce operational disparities compared to other fertiliser systems.
The move also supports a stronger presence in key regional areas, especially in Queensland, by enabling more competitive service offerings and positioning LiquaForce more effectively in core markets.
In line with broader trends across industrial and resource-related sectors, this strategic expenditure draws parallels with initiatives seen in ASX Mining Stocks like BHP Group Ltd (ASX:BHP), where investment in specialised equipment and distribution frameworks remains central to operational efficiency.
Convertible Notes Structure and Redemption Outlook
The issued convertible notes are unsecured, with a defined maturity timeline and a conversion mechanism tied to the company's equity. The structure includes provisions for early redemption, providing flexibility in capital management.
Overall, the funds raised through this placement are aimed at maintaining operational momentum during a critical trading period, ensuring supply meets demand across all active territories.
