Sep 19, 2021

Share RLF Agtech, which has developed technology that leads to larger plant root system for improved nutrient uptake, more robust crops, improved water utilisation and healthier soils, has appointed Discovery Capital Partners and The Capital Network to manage a $3 million pre-IPO capital raise in the form of a convertible note. RLF Agtech helps farmers boost the yield of their crops without fertiliser. Bloomberg The convertible note gives institutional investors the chance to buy into the business ahead of its initial public offering, which is slated for later this year. An investor presentation seen by Street Talk revealed that RLF plans to raise $10 million via an IPO in the fourth quarter of this calendar year, which would see it list with about a $27.7 million enterprise value. The notes would convert at a 30 per cent discount to the IPO price. RLF’s Plant Proton Delivery Technology (PPD Tech) has been independently trialled, with the results indicating it a delivers 10 per cent to 30 per cent yield increase above traditional fertilisers. Advertisement Reducing the reliance of the agricultural sector on fertilisers reduces the carbon output across the industrial supply chain, while the PPD Tech also boosts yield and nutrient uptake. For every 100,000 hectares treated with RLF product achieving a 10 per cent yield increase, the additional impact on emissions reductions is equivalent to the annual CO2 emissions produced by 150,000 cars. So far, a million hectares have been treated using RLF’s products. The business, which is targeting $100 million in revenue by 2026, was started in 2007 by Chinese company RLF Kaifeng. It made a maiden profit in 2018 of $1 million. Pre-COVID it had a compound annual revenue growth of 60 per cent. Factory shutdowns during the pandemic put a handbrake on its growth, but led to an earnings surge. Get a first look at tomorrow's headlines Sign up to the Street Talk First Look newsletter