Pendulum Capital, led by Peter Fogarty and Greg Harvey, will acquire a 19.9 per cent stake in Alterra.
Pendulum Capital, led by agribusiness investors 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.
Alterra has received firm commitments from Pendulum, Alterra’s major shareholder Sandon Capital and other professional and sophisticated investors to raise $1.85 million at 4 cents per share.
The company intends to issue a further 46,305,303 shares at 4 cents via an entitlement offer.
Alterra chair John McGlue said the investment made Pendulum Group the company’s second largest shareholder, behind Sandon Capital.
He said the company would be tapping into Mr Fogarty and Mr Harvey’s investment and agricultural expertise.
“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.
Outside of his role as chair of Pendulum Capital, Mr Fogarty is the founder of Fogarty Wine Group, the largest wine producer in WA, according to Business News’s Data & Insights.
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.
Live export company Emanuel Exports, owned by the Daws family, acquired a 15 per cent stake in Alterra in September 2020.
Shares in Alterra were up 7 per cent to 4.6 cents each at 2pm AWST.
