Live export company Emanuel Exports has acquired a 15 per cent stake in agribusiness firm Alterra.
The purchase was part of Alterra's recently completed $1.7 milion capital raising.
The capital will be used to support the expansion of Alterra’s South West project pipeline and provide working capital to complete feasibility studies and advance plantings at its 300-hectare avocado development, the Carpenters Project.
The company issued 34 million shares at 5 cents each.
The majority of the placement was issued to Emanuel, totalling $1.39 million, with the balance going to existing shareholder and investment firm Sandon Capital, which maintained its 19.2 per cent shareholding.
Under the terms of the placement, Emanuel can undertake due diligence of the Carpenters Project.
Emanuel managing director Nicholas Daws said investment was a logical fit with the company's existing business interests, and a vote of confidence in Western Australian agriculture.
“My family has been committed to rural WA for over 50 years, which started with my grandfather in the 1950s, I welcome the opportunity to expand our business operations and continue to invest in and support the WA agricultural sector,” Mr Daws said.
He said the purchase would provide the opportunity for Emanuel to support Alterra's export-focused model with its extensive network in the international market.
“Access to good reliable protein sources will be an ongoing challenge the world over,” Mr Daws said.
“In this context, we see WA agriculture can be an important part of the world’s food bowl.”
“This investment is a significant endorsement of Alterra’s business model and confidence in our project pipeline.
“We are also pleased to see Sandon Capital continuing its support of the company.
“This placement into Alterra allows the company to advance its developments as it continues to scale and unlock greater opportunity for investment in land and water assets in WA.”
Emanuel Exports had its live export licences cancelled in 2018 and its directors were charged with animal cruelty after 2,400 sheep died on a ship bound for the Middle East in 2017.
The charges were dropped by the Commonwealth Director of Public Prosecutions in April 2020.
Shares in Alterra were down 2 per cent to 5 cents each at 1pm AWST.