RLF AgTech Ltd has retracted previously announced field trial results due to ASX compliance issues, while simultaneously reporting significant debt reduction and ongoing equity raising efforts to support its expanding Australian and Chinese operations.
- Retraction of field trial results for non-compliance with ASX Listing Rules
- Debt reduction of approximately $2 million through revised repayment terms
- Completion of $1.05 million equity placement with a $2.42 million rights issue underway
- Expansion of Australian business with new distribution agreements and product launches
- Positive sales and margin performance in China with new product introductions
Compliance Setback: Retraction of Trial Results
RLF AgTech Ltd (ASX: RLF) has issued a clarification and retraction statement concerning its January 20 announcement, withdrawing the results of two field trials conducted in partnership with growers and CRU. Although the company stands by the integrity and positive outcomes of these trials, it acknowledged that the trial processes did not meet ASX Listing Rule requirements. Investors are advised not to rely on the previously released trial data, marking a notable compliance hiccup for the AgTech company.
Financial Restructuring: Debt Reduction and Equity Raising
In a significant financial development, RLF has successfully negotiated a reduction and deferral of its deferred payables totaling approximately $4.02 million. The revised agreement with related parties Rural Liquid Fertilisers Pty Ltd and RLF Global Pty Ltd reduces liabilities by 30%, delivering immediate savings of over $1.2 million. The company aims to further reduce this debt by repaying $532,000 to RLF Global by March 31, 2025, potentially achieving a combined saving of around $2 million.
Complementing this debt restructuring, RLF completed a $1.05 million placement in December 2024, issuing approximately 35 million new shares at $0.03 each, with a non-renounceable rights issue underway to raise up to $2.42 million. These capital-raising efforts are designed to fund the expansion of the Australian business, manufacturing capacity, and general working capital needs.
Australian Market Expansion: Distribution and Product Development
Following the termination of its previous Australian distribution agreement, RLF has taken full control of its Australian operations, establishing RLF Australia Pty Ltd and appointing Paul Clausen as General Manager. The company is actively negotiating distribution agreements with major agricultural retail groups, leveraging a network of over 1,300 outlets nationwide.
RLF’s Australian product portfolio includes a comprehensive Crop Performance Pack of 16 key products tailored to crop growth stages, alongside specialized nutrient deficiency solutions branded as IntelliTrace. A recent trading agreement with National Rural Independents (NRI) expands RLF’s reach to 152 NRI locations, marking a critical milestone in market penetration.
China and Asia Operations: Strong Sales and New Product Launches
RLF’s China business exceeded budgeted sales by approximately 4% in the December quarter, with product margins outperforming expectations at 44%. The company launched two new products, Neutral 12-Foliar and Power N33, which attracted significant market interest during a major product event in Hefei Province.
In Asia, RLF continues to support distributors in Vietnam and Cambodia, with new orders and promotional activities underway. The company is also preparing a coffee nutrition trial in Vietnam to address ripening uniformity, a key challenge for regional coffee growers.
Carbon Project and Corporate Updates
RLF is progressing its Hillston Soil Carbon Project in New South Wales, commissioning independent soil sampling to validate increases in soil organic matter for Australian Carbon Credit Unit (ACCU) eligibility. Results are pending, but this initiative aligns with RLF’s broader sustainability vision.
Corporate governance remains stable with all FY2024 AGM resolutions passed, and the company maintains a cash balance of $5.4 million as of December 31, 2024. Related party payments and director fee deferrals continue to support cash flow management.
Bottom Line?
RLF AgTech’s retraction of trial results underscores compliance risks even as debt relief and market expansion efforts set the stage for its next growth phase.
Questions in the middle?
- How will the retraction of trial results affect investor confidence and future ASX compliance?
- Can RLF successfully execute its debt repayment plan and equity raising to sustain growth?
- What impact will the new Australian distribution agreements have on RLF’s market share and revenue?