Pure Foods Tasmania Raises $400,000 via 20 Million Shares and Options Placement

Strategic Capital Injection

Pure Foods Tasmania Limited (ASX – PFT) has taken a significant step in its ongoing turnaround and recapitalisation efforts by entering into a conditional placement agreement with seasoned entrepreneurs Jon Kontopos and Matthew Abrahams. The agreement, announced on August 27, 2025, involves a $400,000 investment through the issuance of 20 million new shares priced at two cents each, alongside an equal number of unlisted options exercisable at five cents within two years.

This injection forms part of a larger $750,000 placement initiative that the company first flagged earlier this month, with final approval sought from shareholders at the Extraordinary General Meeting scheduled for August 29. The shares issued under this placement will be subject to a 12-month voluntary escrow, underscoring the investors’ commitment to the company’s medium-term growth prospects.

Backing from Proven Entrepreneurs

Jon Kontopos brings a track record of scaling high-growth businesses, notably founding and successfully exiting the Caring Group, a leading home care provider in Australia. His investment partner, Matthew Abrahams, is the founder of Honcho, Australia’s largest commercial business registration service, and has a history of active investing alongside Kontopos, including their joint involvement in Caring Group.

Their participation not only provides Pure Foods Tasmania with much-needed capital but also signals confidence in the company’s strategic direction. Their experience in building and scaling businesses could prove invaluable as Pure Foods Tasmania seeks to expand its footprint in premium food and beverage markets, including its plant-based product lines.

Implications for Shareholders and Market Position

The placement and associated options will dilute existing shareholders but are positioned as a necessary step to support the company’s turnaround strategy. Pure Foods Tasmania’s portfolio includes well-known Tasmanian brands such as Woodbridge Smokehouse, Tasmanian Pate, Daly Potato Co, and The Cashew Creamery, all of which stand to benefit from enhanced market penetration and product development funded by this capital raise.

Executive Chair Malcolm McAully welcomed the investment, highlighting the strong support from Kontopos and Abrahams as a vote of confidence in the company’s future. The upcoming EGM will be a critical juncture, with shareholder approval needed to finalise the placement and enable the company to execute its recapitalisation plan fully.

As Pure Foods Tasmania moves forward, the market will be watching closely to see how effectively the company leverages this capital to drive growth and improve operational performance in a competitive food and beverage sector.