New Zealand agtech startup CropLogic to raise $8 million through ASX listing
Christchurch-based agtech CropLogic has released its prospectus ahead of its proposed ASX listing, as the business looks to raise up to $8 million by offering 40 million shares at $0.20 each.
The announcement follows a period of growth for the company, with the beginning of the year seeing CropLogic acquire US-based agronomy services company Professional Ag Services Inc.
The acquisition acted as a springboard into the US agricultural market for CropLogic, which is now looking to broaden its operations across the US, as well as Australia and New Zealand, with the proposed ASX listing.
Capital funds will also go towards research and development, ASX listing costs, and expansion into China.
CropLogic CEO James Cairns said he’s excited about the opportunities to grow the startup internationally, a process which will be eased by the strengths of the acquired company, Professional Ag Services.
“Our strategy provides us with the opportunity to firstly use our technology to transform and optimise the business model of the acquired companies before then introducing additional services to their clients. It is a two-phase approach that we believe reduces the cost and risk of market entry,” he said.
Launching back in 2010, the startup’s flagship “decision support” software harnesses research data to deliver accurate and relevant advice to crop growers that can help improve their yield.
The intellectual property (IP) software was leveraged from New Zealand’s Institute for Plant and Food Research, as well as New Zealand Crown Research Institute.
Operating within New Zealand, the startup soon raised over $1 million, including $512,000 through crowdfunding platform Equitise, as it began expansion overseas. Currently, CropLogic’s IP is patented in both US and New Zealand, with the startup conducting regional field trials with global food brands within Australia and the US.
Looking to fund its IPO, last month saw the startup complete a $2 million raise from New Zealand VC firm Powerhouse Ventures.
Sydney’s Hunter Capital Advisors will be leading CropLogic prospectus and IPO process, with the firm’s managing director, Stephen Silver, saying the move comes at an integral time for the agtech sector.
“The agritech sector is experiencing significant investor interest at present, driven by the need to support global population growth, scarcity of water and need for food security,” he said.
Showing the growing investor interest in the sector, earlier this year saw Australian agtech startup The Yield, who develops an Internet of Things device to help improve food growers yield, raise $6.5 million in a Series A round led by Bosch Australia.
Agtech accelerator SproutX also launched this week with the announcement of its first cohort, with the program backed by a $10 million fund managed by Artesian Venture Capital.
The startup will also be conducting a roadshow presentation within New Zealand and Australia within the coming weeks.
Image: James Cairns. Source: Anthill Magazine.