Cotton processing business Namoi (ASX:NAM)
is looking to raise up to $12.2 million from institutional investors and the company’s current shareholders.
The capital-raising campaign is comprised two main components.
First, the company conducted a $7.2 million institutional placement last week.
The second part of the equity raise is tapping existing shareholders of Namoi for $3 million to $5 million, as the share purchasing plan expires on June 1.
The $61 million company has revealed to investors that it intends to use the funds acquired to facilitate growth projects and a major ramp-up in cotton production.
Namoi aims to to bump up production volumes by four times in FY22.
The company currently owns 11 cotton-ginning facilities in New South Wales and Queensland. ?
Shares in Namoi Cotton (ASX:NAM)
are trading 8.14 per cent lower at 40 cents