RLF AgTech Secures $3.9 Million to Drive FY27 Growth

Capital Raise Aligns with Growth Strategy

RLF AgTech Ltd (ASX:RLF) has secured binding commitments to raise approximately $3.9 million through a combination of a share placement and convertible notes, subject to shareholder approval at a general meeting on 28 August 2026. The capital injection follows a period of strategic restructuring and management strengthening, positioning the company to convert its sales pipeline into sustainable revenue.

The placement involves issuing 128.2 million shares at $0.028 each, representing a 3.4% discount to the last closing price and a 9.1% discount to the 15-day volume-weighted average price. This modest discount reflects a balance between attracting institutional and sophisticated investors and minimising shareholder dilution.

Convertible Notes Provide Flexible Funding

Alongside the placement, RLF plans to issue $310,000 worth of unsecured convertible notes with an 11.5% annual interest rate payable quarterly in cash. These notes mature on 1 September 2028, with holders able to convert to shares at a 20% discount to the 10-day VWAP at conversion or a floor price of $0.028. This structure offers investors a fixed income component plus equity upside potential.

Both the placement shares and convertible notes require shareholder approval, particularly as incoming directors Tim Watson and Greg Hunt participate as related parties under ASX Listing Rule 10.11. Their involvement signals confidence from new leadership in the company’s growth trajectory.

Funding to Support Commercial Execution and Expansion

CEO Stuart Upton highlighted that the funds will be deployed to secure raw materials and inventory to meet customer pre-orders, fund targeted capital expenditure, and advance joint venture opportunities. This capital raise comes after a sustained effort over 18 months to rebuild Australian sales capabilities and strengthen the board and management team.

RLF’s recent operational reset, including a 47% headcount reduction in its LiquaForce division and a $4.5 million placement earlier in 2026, laid the groundwork for this next phase of growth. The company’s focus on profitable expansion across its Australian, Queensland, and Chinese operations aligns with its strategy to capitalise on seasonal cycles and broaden its product portfolio.

The raise also follows RLF’s progress in improving cash flow and sales momentum, including a six-fold increase in Australian sales receipts and record pre-season payments in China, which have been key to narrowing cash burn and driving positive EBITDA in recent quarters.

Board and management participation in the raise, including incoming non-executive directors, underscores a strong alignment with shareholders as RLF targets its first full year of commercial execution in FY27.