Agrimin announces discounted share purchase plan

By Market Index
Tue 15 Feb 22, 5:27pm (AEDT)
An image depicting an individual transferring a seedling from pot to ground
Source: iStock

Key Points

  • Agrimin closed at $0.38 today
  • The company is allowing eligible shareholders to buy at an issue price of $0.35
  • Agrimin will be issuing 1 free stock for every 5 shares held in March
  • Agrimin’s flagship Mackay Potash project will draw 84% of its power from renewables

Potash company Agrimin (ASX: AMN) will provide retail investors with the same discounted price given to institutional investors through a share purchase plan (SPP). 

The stock closed today’s trading at $0.38. However, the SPP will let eligible shareholders buy at an issue price of $0.35 (a 8.57% discount). 

This was the same price which the company used to raise $5m from institutional and professional investors on 28 January. 

Eligibility conditions

To be eligible, investors must have held Agrimin stock at 5pm on 27 January.

Through the SPP, investors can purchase no more than $30,000 worth of shares. 

The opportunity closes at the end of trading on 16 February. 

Buy 5, get 1 free

Agrimin will also be issuing 1 free share for every 5 shares that investors hold at the close of trading on 17 March. 

“In recognition of the immense value added to our Tier 1 Mackay Potash Project, as well as the continued support from shareholders, we are pleased to announce our intention to issue bonus shares,” said CEO Mark Savich in a 28 January announcement. 

According to the company, the bonus shares will boost liquidity and recognise the significant value of the company’s projects. 

“We strongly believe the Company’s current market capitalisation does not reflect the value that’s been added as the Company nears a final investment decision for what will be the world’s largest and lowest cost seaborne supply of SOP [Sulphate of Potash].”

Potash 1 - Sack bag and granular mineral fertilizer, top view

84% renewable penetration at Mackay

In an exclusive interview with Market Index, CEO Mark Savich discussed the key attributes of Agrimin’s flagship Mackay Potash project, located in WA.

In particular, the project appears to have strong ESG potential. As part of the company’s feasibility study, Agrimin recorded the wind resource for 18 months. 

“We had very low seasonal variability in the wind speed throughout the year, and the wind was quite strong at night time, which complemented solar,” says Savich.

These findings led to a remodelling of the renewable penetration number. The company now believes that 84% of the project’s power will come from renewable sources. 

Savich also said that the project is on the cusp of being “shovel ready.”

“The focus for Agrimin this year is to get our project fully permitted, complete our front end engineering design, and then also secure our offtake agreements.”

“Off the back of those three things, it’s effectively a shovel-ready project. The final piece after that will be the funding solution for the project.”

In a further tick for the project’s ESG credentials, Agrimin have secured organic certification for the potash that Mackay will produce. 

“This offers one of the rare opportunities for large scale, organic, non-chemical fertilisers to be produced globally.”

For more details about Agrimin, check out the company's Deep Dive.

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