Pendulum Capital, led by Peter Fogarty and Greg Harvey, will acquire a 19.9 per cent stake in Alterra.
The investment is part of a $3.7 million capital raising to fund the next stage of Alterra’s Carpenters avocado project in the south west of Western Australia.
According to Alterra’s statement to the ASX, it will be primarily used to accelerate development of a further 52 hectares of avocados at the project site and for general working capital.
The company intends to issue a further 46,305,303 shares at 4 cents via an entitlement offer.
“Pendulum has a great track record in the agribusiness and horticulture sectors, and Alterra looks forward to their contribution as investors for the benefit of all of our shareholders,” Mr McGlue said.
Mr Harvey recently joined Pendulum after working as managing director and chief executive of the Forrest’s family’s Harvest Road Group and as chief executive of Interflour Group.
He said he was looking forward to working with Alterra to realise its growth potential.
“Pendulum has invested in Alterra because of its flagship Carpenters avocado project and its potential to take advantage of the abundance of opportunities in horticulture and agriculture,” Mr Fogarty said.
Shares in Alterra were up 7 per cent to 4.6 cents each at 2pm AWST.