Perth-based agribusiness AACL Holdings has executed a $50 million grain purchase facility with CBH Group, as it makes a positive start to listed life.
The facility, an extension of the $30 million agreement for the 2009-10 season, will be used by AACL to contract farmers to produce grain for the 2010-11 season.
AACL is also raising $15 million for the 2010 grain co-production project, a share-farming arrangement.
The 2010 project is a three year operation where investors provide funds to grow crops, such as wheat, barley and or canola, with farmers, who supply the land, equipment and inputs.
The risks and the rewards of the project are then shared by investors and farmers, with farmers incentivised to outperform. The project also guarantees farmers cash-flow and income protection against adverse events.
The 2010 project will be AACL's sixth project offer to investors.
AACL is targeting to raise the $15 million from retail investors before the end of June, and together with the existing investor capital and the CBH pre-payment, AACL expected to have up to $100 million available for crop plantings in 2010.
Meantime, AACL made a premium debut on the Australian Securities Exchange today.
Shares in AACL, one of the first agribusinesses to list since the collapses of Great Southern and Timbercorp, opened at 27.5 cents before closing at 26c.
AACL raised $11 million in its initial public offer, with shares issued at 25c.
