Australian Dairy Nutritionals Group is on track to becoming Australia’s only vertically integrated organic formula company after raising $12 million from institutional investors
AUSTRALIAN Dairy Nutritionals Group is on track to becoming Australia’s only vertically integrated organic formula company after raising $12 million from institutional investors.
In April, the company bought a secondhand infant formula plant — worth $5 million — from overseas to relocate to its Camperdown Dairy site.
ADNG said the $12 million would go towards the acquisition of the plant.
The board of ADNG received subscriptions for 100,000,000 new ordinary stapled securities at $0.12 per security.
The group said the placement had the support from institutional, sophisticated and professional investors.
“We now have the capital to move forward with the construction of a facility for the reassembly of the infant formula plant,” ADNG chief executive Peter Skene said.
Mr Skene said the funds could now help the group transform into a vertically integrated organic infant formula and dairy nutritionals business, using organic milk from the group’s farms to produce organic infant formula products.
“The funds will also allow us to continue our strong focus on developing company-owned dairy brands and building additional capacity for our existing fresh dairy products plant, Camperdown Dairy Company,” Mr Skene said.
The placement will be completed in two tranches — the first will be issued on Thursday and the second will be issued after gaining the approval of shareholders at the company’s annual general meeting on August 1.
Source: weeklytimes