Terragen Holdings has raised A$7 million through a strategic equity raising to fund scientific research and accelerate global commercialisation, while appointing Dr Michele Allan AO as its new Chair.
- A$7 million equity raising via institutional and conditional placements
- Funds to support R&D, global commercialisation, and working capital
- Major shareholder Scobie Ward commits A$2.25 million
- Pro forma cash position to reach approximately A$9.8 million
- Dr Michele Allan AO appointed as new Chair, replacing Michael Barry
Equity Raising to Fuel Growth
Terragen Holdings Limited, an Australian biotechnology company specialising in microbial products for agriculture and animal health, has successfully secured binding commitments for an equity raising totalling approximately A$7 million. The capital raise comprises an institutional placement of about A$2.78 million and a conditional placement of approximately A$4.22 million, the latter subject to shareholder approval. This move is designed to underpin Terragen’s ongoing scientific research and development efforts, as well as to accelerate its global commercialisation ambitions.
The equity raising will see the issue of roughly 318.2 million new shares, representing around 63% of the company’s existing issued capital. The new shares will be priced at A$0.022 each, reflecting a modest discount to recent trading prices, and will rank equally with existing shares once issued.
Strategic Use of Funds
Terragen plans to deploy the proceeds to strengthen its product management resources, pursue global market access through partnerships with established agricultural and animal health brands, and fund targeted research and development initiatives. These efforts are aimed at expanding the company’s product range, which currently includes the Terragen Probiotic® for Ruminants and the Great Land Plus® plant biostimulant, both marketed in Australia and New Zealand.
With a pro forma cash position estimated at A$9.8 million as of 31 December 2025 (before transaction costs), Terragen is positioning itself to capitalize on the growing global demand for biostimulants and probiotics. These products are increasingly valued for their ability to enhance productivity while supporting environmental sustainability, particularly in climate-smart food systems.
Leadership Transition and Investor Confidence
Alongside the equity raising, Terragen announced a significant leadership change with Dr Michele Allan AO appointed as Chair of the Board, effective 5 February 2026. Dr Allan brings extensive governance experience and a strong commitment to advancing Terragen’s strategic objectives. She replaces Michael Barry, who steps down as Chair but remains on the Board as a Non-Executive Director.
Notably, major shareholder and Director Scobie Ward has committed to participate in the equity raising with a substantial A$2.25 million subscription, signaling strong insider confidence. Additionally, new investor WAM Investments Pty Ltd is set to acquire a significant stake, further bolstering the company’s shareholder base.
Market Context and Outlook
Terragen operates in markets estimated at $28 billion, spanning cropping, intensive animal feeding, companion animals, and domestic gardens. The Australian biostimulant market alone has grown to approximately $200 million annually. The company’s patented microbial strains have demonstrated meaningful productivity gains, including returns on investment of up to ten times in intensive beef and lamb feedlots.
While no binding distribution agreements are currently in place, Terragen is actively expanding trials and distribution discussions, aiming to secure global partnerships that will drive long-term sustainable growth. The equity raising is a critical step in supporting these ambitions, enabling the company to continue developing innovative, nature-based solutions that promote soil health and reduce emissions.
Bottom Line?
Terragen’s fresh capital and leadership renewal set the stage for accelerated growth, but shareholder approval and commercial partnerships remain key hurdles ahead.
Questions in the middle?
- Will shareholder approval be secured for the conditional placement and director participation?
- How soon can Terragen convert ongoing trials and discussions into binding global distribution agreements?
- What impact will the leadership change have on the company’s strategic direction and market confidence?