CropLogic's ASX float underwritten by Australian corporate
adviser Hunter Capital
By Paul McBeth
Aug. 8 (BusinessDesk) - CropLogic, the agricultural technology company which counts Powerhouse Ventures as a shareholder, will have its initial public offering underwritten to ensure it crosses the A$5 million threshold.
Sydney-based Hunter Capital Advisors has been acting as a corporate adviser to CropLogic and has committed to ensuring its public listing succeeds, acting as an underwriter for the offer, CropLogic said in a statement yesterday. Christchurch-based CropLogic is offering 40 million shares at 20 Australian cents apiece to raise as much as A$8 million and listing on the ASX. Those funds will pay for market development, research and development, working capital, and to cover the cost of listing, which is a certainty with the underwrite.
"CropLogic is encouraged by the positive response from the market in this early stage of our IPO process," managing director Jamie Cairns said. "I believe this speaks to the growing recognition generally of the importance of technology in agriculture to meet future global demand for food and the quality of CropLogic's technology and offering."
The CropLogic IPO would also be a boon for investor Powerhouse Ventures as the first float in the Christchurch-based technology incubator's investment portfolio. Powerhouse owns 30.6 percent of CropLogic, which would be watered down to at least 17.5 percent at the minimum capital raise.
Powerhouse has been struggling with one of its other larger investments this month, seeking more information from HydroWorks after the hydroelectric turbine developer's board resigned en masse. The incubator firm has a 24 percent stake in HydroWorks, which had previously been touted for a listing on the ASX this year before struggling with some financial difficulties.
"CropLogic's IPO represents the first demonstration of our 'IP to IPO' pathway typical of our patient capital model," Powerhouse managing director Stephen Hampson said.
The CropLogic offer opened on Aug. 3 and closes on Aug. 15, with a proposed listing on Aug. 31.
Powerhouse listed on the ASX last year after raising A$10.9 million in an IPO at A$1.07 a share. The stock last traded at 55 Australian cents.