AACL to raise $2.7 million

Grain producer AACL Holdings says it has completed a $2.7 million capital raising through commodities trader Glencore International.

AACL will place $500,000 worth of its shares with Glencore Grain, and will also launch a renounceable rights issue, fully underwritten by Glencore, to raise an additional $2.2 million.

The placement was completed at an issue price of 5.1 cents per share, a 17 per cent premium to the 20-day volume-weighted average trading price preceding June 17.

Following the placement, Glencore now holds 13 per cent of Glencore.

AACL said it would now invite shareholders to participate in its rights issue, at 3 cents per share, a 31 per cent discount to the 20-day volume-weighted average trading price preceding June 17.

AACL managing director Peter McEwen said the placement built on the company's $150 million funding and marketing agreement with Glencore, which is valid for the next three grain seasons, with an option for a three year extension.

Also today, AACL announced board member Chris Brooks had been appointed non-executive chairman, while DAvid Mattiske was appointed as non-executive director.

AACL executive director Peter Morrison has resigned, the company said.