COBRAM Estate Olives has launched a $10 million share purchase plan to fund growth in its United State operations.
The share offer opened on Tuesday and follows a $175 million institutional placement.
Shares have been offered at $3.20, a discount of at least 0.9 per cent on the company’s trading price earlier this month.
Cobram Estate, that has one of the Southern Hemisphere’s largest groves at Boort and last year opened a new processing facility, says it has a pipeline in the US “of new, uncommitted properties at various stages of due diligence with a number of parties, which would provide well in excess of the target 1600 hectares of plantable land, and has a high degree of confidence in acquiring the land”.
“Funds from the equity raise will be used for the purchase of this additional Californian land and associated grove development costs,” it said after the institutional offer closed.
Non-executive chair and co-founder, Rob McGavin, said: “We are grateful for the strong support shown for the placement, The funds raised will accelerate the rollout of our USA growth strategy, where we see significant potential to replicate — and ultimately surpass — the success of our Australian business.”