Developing a Capital and Equity Management Strategy to Fund Growth

RLF Asia Limited has been looking to expand its operations and influence globally.

It has committed considerable effort investigating the opportunities available to it to raise capital to expand the sales of its technology, products and services in a way that meets its goals and shareholder expectations.

It is with pleasure that an agreement with KG Capital Partners has been reached and can now be announced.

In line with the Terms agreed, KG Capital Partners will be engaged as Financial Advisor to the Company, and will develop a capital and equity management strategy for RLF to ensure it is appropriately funded for its growth ambitions. Further, they will immediately embark on a pre-IPO capital raising to fund the considerable work required for a successful IPO (Initial Public Offer). An anticipated $20million IPO is planned for 2021.

About KG Capital Partners

The Company was established in 2020 by Justin Klintberg and Tom Gunnersen and is a boutique Corporate Advisory firm with significant experience in raising growth capital at various stages of a company’s evolution.

The firm has extensive experience and knowledge with Mergers and Acquisitions across a range of industry sectors. They specialise in micro/small-cap financings, project acquisitions and sales, divestments and spin offs, board restructuring, project origination and due diligence. They have guided and assisted many companies from their inception through to listing and have extensive experience and networks across Australia and Asia in funding emerging growth companies in private and public markets.

In announcing this significant next step, RLF Asia’s Managing Director, Mr Ken Hancock said, “we look forward to working with Justin and Tom as they assist us in developing a strategy that will allow us to successfully complete the IPO transactional process. Justin and Tom both have considerable experience in this field and today is just the start of our partnership as we work together to guide our operations forward”.

Ag-Tech as a Burgeoning Market Sector

RLF AgScience hopes to join other highly successful Ag-Tech companies in the marketplace. Amongst these are Terragen (ASX:TGH) with a market capital of $62m (as at 12.10.2020), and Wide Open Agriculture (ASX:WOA), with a market capital of $90m (as at 12.10.2020).

Today’s farms and agricultural enterprises are far different from those of the past, and advancement in many bio-technologies has created an exciting future for sustainable agriculture, with healthier and more productive outcomes.

  • New technologies drive higher crop productivity, crops and produce with increased nutritional benefit, greater natural soil health, more efficient and safer working conditions, and better economic returns.
  • New technologies also drive down fertiliser and water use, allow for less reliance on chemical crop protection products, and reduce the impacts on natural ecosystems through decreased runoff of fertilisers and chemicals into rivers and groundwater.

Today’s agriculture is being driven by today’s issues, and the important environmental, social and governance criteria (ESG) in food production underpins much of RLF’s thinking and product development, because socially conscious consumers are looking to purchase food supplies that are not only nutritious and healthy, but those that have been grown with sustainable and
ethical practices.

A spokesman for KG Capital commented, “we are excited to be working with RLF to assist them in their growth ambitions. We are seeing significant tailwinds in the agricultural sector with respect to regenerative agriculture, food security and enhancement of yield through crop nutrition. RLF ticks all of these boxes. Their Team has significant experience, and results in the field that have been gained over the last two decades through thousands of case studies and crop trials”.

RLF Products at the Forefront

RLF has been at the forefront of this scientific approach to crop nutrition for well over 25 years, and has been delivering real benefits to farmers across the globe as it educates them of the importance of using a holistic approach to balanced crop health by utilising all three nutrient pathways of seed, leaf and root. In tandem with this fully integrated fertiliser management (IFM) message, has been its strong focus on the health of the soil, and the importance of establishing a bigger and better root system that returns it benefits, after harvest, to naturally replenish and build soil fertility.

RLF’s products are purpose-built, engineered and targeted, and have quickly become trusted by farmers and growers worldwide. They are proven, through hundreds of trial, demonstration and evaluation crop programs and the deliver positive environmental outcomes that are commercial for today’s farm practices.

In 2007 RLF established a manufacture and distribution operation in China, and in 2013 it upgraded its facilities to include a technical laboratory, and modern manufacturing, packaging and distribution centre as it expanded its reach further across the Asia-Pacific. Food security in this fast-paced and developing middle economy is seriously under threat, and new technologies are needed to support it.

RLF products have been proven to:

  • increase early vigour
  • promote stronger plant growth with early tillers that are more viable
  • give tolerance against drought and water logging
  • improve the performance of granular fertiliser
  • generate greater phosphorous activation and improved uptake from the soil
  • improve nitrogen efficiency in the plant
  • provide the plant with greater tolerance to environmental impacts or extremes
  • promote better resistance to disease
  • provide the plant with greater tolerance to environmental impacts or extremes
  • augment the plant’s stress handling abilities
  • buffer pesticides and fungicides
  • improve plant metabolism
  • create healthier organic matter to build more fertile soils

Fixing crop nutrition means tangible benefits for the plant. Growing crops that yield more and are nutritionally healthier means real economic benefits for the farmer and grower.