Australian Agricultural Company Ltd (ASX:AAC) has announced that it has raised $56.3 million through a placement to institutional and sophisticated investors.
The beef producer says the placement was priced at $1.42 per share and oversubscribed.
Funds will be put towards partially paying down $31.4 million in debt.
Managing director and CEO David Farley says the company is aiming to maintain its target leverage levels and fund growth opportunities.
The company is also undertaking a $30 million share purchase plan to offer eligible shareholders up to $15,000 each of new shares priced at $1.42.
In the 2010 financial year, Australian Agricultural Company moved out of the red to post a net profit of $904,000.
