Ms Lemmon details the entitlement offer, launched by Rural Funds Management for its Rural Funds Group
(ASX:RFF).
The entitlement offer is seeking $22.4 million and follows the successful completion of a placement of $12.6 million.
Australia’s first diversified agricultural REIT aims to raise $35 million. With that, RFF is seeking to purchase and develop a 1500 hectare almond orchard located at Darling Point, near to RFF’s other existing almond orchards.
The entitlement offer and subsequent developments will grow RFF’s net assets from $153 million to $185 million.
Ms Lemmon highlights that one key benefit is a larger pool of investors for shareholders to trade their units with, with a greater number of potential buyers and sellers. The transaction will also grow RFF’s funds from operation, which in turn will grow investor’s distribution over time.
