Namoi (ASX:NAM) raising $12.2m from institutional & existing investors

03/05/2021 10:15:00

Cotton processing business Namoi (ASX:NAM) is looking to raise up to $12.2 million from institutional investors and the company’s current shareholders.

The capital-raising campaign is comprised two main components.

First, the company conducted a $7.2 million institutional placement last week.

The second part of the equity raise is tapping existing shareholders of Namoi for $3 million to $5 million, as the share purchasing plan expires on June 1.

The $61 million company has revealed to investors that it intends to use the funds acquired to facilitate growth projects and a major ramp-up in cotton production.

Namoi aims to to bump up production volumes by four times in FY22.

The company currently owns 11 cotton-ginning facilities in New South Wales and Queensland. ?

Shares in Namoi Cotton (ASX:NAM) are trading 8.14 per cent lower at 40 cents