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Capital Raising

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DIT AgTech Limited

Enabling Farmers to Create Positive Impact

INDUSTRY

Agriculture

RAISING

A$5M

OFFER PRICE

A$72M

MINIMUM INVESTMENT

A$20,000

Investment Highlights

Company Overview

Products & Services

Transaction Overview

Additional Information

Team


Transaction Summary
DIT AgTech Limited

Rasing A$5M

Pre-Money Valuation A$72M

Independent Valuation from PKF (April 2023)

A$1.12M already raised

Investment Highlights


Established debt fund seeking investors for secure funding

DIT AgTech is paying BBSY 4.3% + margin of 10% (representing 14.3% p.a. as at January 2024)

The Offer is only open to sophisticated and professional investors, or wholesale clients (as each of those terms is defined in the Corporations Act

Proven market for Full Service (Enterprise) model with over 200 dosing units installed and generating revenue, across some of the biggest commercial cattle stations in Northern Australia

Significant low-hanging fruit for rapid scale-up with potential for A$4M in Monthly Recurring Revenue (MRR)

Revenue expansion potential through international markets, horticulture (precision fertigation) and carbon credit creation

Company Overview


Proprietary technology

DIT AgTech’s market-leading precision dosing systems use a farm’s existing water infrastructure to deliver protein and vital nutrients, enabling farmers to automate and optimise livestock supplementing

Enabling data-driven decisions

Monitoring and incorporating vital on-farm data such as cattle weights, rainfall, pasture cover, and real-time monitoring of supplement intake

AgTech meets ClimateTech

Uniquely positioned to intertwine AgTech and ClimateTech, our innovative solutions work to drive progress across agriculture and global sustainability

Methane Reduction

Emissions reduction through methane-reducers that can be fed via DIT AgTech systems, and precise carbon accounting enabling farmers to seamlessly record, report, and monetise their methane reduction initiatives

DIT AgTech has established a secured debt fund providing investors quarterly interest payments, as well as free attaching options to become future shareholders and partners in our shared mission.

The initial funds raised will be used to fund the manufacture of uDOSE units for large scale corporate customers in Northern Australia under DIT AgTech's Full Service Enterprise Plan, and as growth capital for revenue expansion.

Minimum investment amount: A$20,000
Looking to raise: A$5M
Interest payable: [BBSY 4.3%*] + margin of 10% (representing 14.3% p.a. as at January 2024)
Interest payment frequency: Quarterly
LVR: LVR ratio less than 10% of the independent valuation carried out by PKF in April 2023
Free attaching options: One free attaching share option for each dollar invested. Prices as per the offer section.

From manual to automatic: An industry ripe for disruption

To date, Australia’s livestock industry has put up with labour-intensive and imprecise methods of supplementation (such as lick blocks, injections, or manually administered liquid supplements). DIT AgTech’s precision supplement delivery systems make supplementing automatic, accurate, and measurable

Unlocking valuable data

The systems give farmers never-before accessible data, making supplementing measurable and helping on-farm decision making

Proven market and concept

Almost 200 dosing units installed (and a pipeline of 200 to be installed) with current customers across the biggest commercial cattle stations in northern Australia

Potential to scale within existing accounts

Even with our current customers who together have c.1.4million head across their properties, we have so far only set up 170,000 head on our dosers giving us currently over $600,000 in MRR. A full rollout to our current customers only would mean upwards of $4m in MRR, which would represent only 5% of the total addressable market in Australia alone

Potential for overseas expansion

We have patents filed and granted in USA, Brazil, Canada and NZ which together have an addressable market of 300 million head of cattle, with the opportunity for exponential annual revenue opportunity for DIT, even before accounting for the carbon credit potential

“Sticky” business models

We have created sticky customers by offering a full-service model for enterprise accounts where we supply the systems free and the customers pay for supplements used. For smaller scale farmers, we’ve employed a ‘razor-blade’ model, where customers buy a uDOSE system and must exclusively purchase supplements from DIT AgTech to keep various functions of their systems active

Carbon upside

Positioned to capture carbon credits from delivering methane reducing supplements and generate additional revenue for both cattle farmers and DIT AgTech.Protected IP: We hold patents in Australia and internationally for the supplementing of livestock via the water, as well as using an electronic proportional dosing unit to administer methane reducing additives

Protected IP

We hold patents in Australia and internationally for the supplementing of livestock via the water, as well as using an electronic proportional dosing unit to administer methane reducing additives

Products & Services


TECHNOLOGY PORTFOLIO & TELEMETRY SOLUTIONS

DIT AgTech’s proprietary supplement delivery systems enable farmers to automate and optimise livestock supplementing. Animals consume water in proportion to their body weight, so supplementing livestock via drinking water is a reliable way to get the target dose of nutrients to every animal, every day. The uDOSE system automatically delivers a specific proportion of supplements into livestock drinking water, ensuring optimal health and performance of all livestock.

Already reaching over 170,000 livestock across Australia, our customers have amplified production by 20%, and achieved, on average, a 30% reduction in supplement and labour costs, while also reducing transport emissions by intelligently utilising on-farm water infrastructure.

Already adopted by industry leaders including AACo., AAM, Paraway Pastoral, and AJM Pastoral - demonstrating the proven value of DIT AgTech solutions. 

DIT Agtech Udose

uDOSE

A proportional dosing system that can automatically and seamlessly deliver any of our proprietary water-soluble supplements from our comprehensive product range to livestock grazing on pasture.

uDOSE is Australia’s only proportional dosing dispenser able to safely deliver urea into livestock drinking water.

DIT AgTech Udose AG

uDOSE AG

Enables horticultural growers to accurately dispense fertilisers to high-value crops. A cost-effective solution for automating on-farm tasks, detailed water reporting, and optimising crop inputs.

DIT Agtech Uhub

uHUB Dashboard

A cloud-based platform that draws real-time data from remote monitoring systems on each uDOSE unit, allowing farmers to monitor livestock watering points, feeding devices, or other sites from their mobile device or computer.

Our telemetry is developed in-house by our Townsville-based team of software engineers.

Supplement & Nutrition Portfolio

The DIT AgTech Innovation & Research teams have developed and keep improving our comprehensive supplement range, to solve vital problems for farmers. The range includes:

uPRO BLUE

Protein phosphorus, and trace mineral formulation with methane-reducing additives.

uPRO ORANGE

Helps farmers achieve production goals cost-effectively in periods of high protein demand.

uPRO GREEN

Unlocks livestock's full potential in phosphorus-deficient regions.

uPRO SOUTHERN

Provides protein, phosphorus, and vital trace elements for ruminant production in southern Australia.

uPRO FORAGE

High in sulphur to detoxify prussic acid, while providing protein, phosphorus, and trace elements.

uTRACE

Contains all major trace elements required for healthy development and resilience to disease.

uBLOAT

Enables farmers to control and prevent bloat with ease.

Transaction Overview


The Offer

DIT AgTech is seeking debt funding through a newly established debt fund named "AgTech Loan Fund."

The fund will issue unsecured loan notes to investors, together with a free attaching share option. Proceeds from the loan notes will be lent on a secured basis to DIT AgTech as part of the Offer. AMAL Trustees Limited has been appointed as the independent third-party corporate trustee to the AgTech Loan Fund.

  • The AgTech Loan Fund's sole activities will be:
  • Issuing loan notes to investors

Lending the received funds to DIT AgTech for capital investment in new assets

The initial funds raised will be prioritised to expedite our 'scale-up' by funding the manufacture of dosing units (uDOSE) for existing and new large-scale customers in Northern Australia under DIT AgTech's Full Service Enterprise Plan. Secondly, funds will also be used as growth capital for revenue expansion, such as to part-fund the manufacture of dosing units (uDOSE) to service the adjacent horticulture segment in precision fertigation.

The Offer is only open to sophisticated and professional investors, or wholesale clients (as each of those terms is defined in the Corporations Act).

DIT-Cattle-drinking

Use Of Funds:

Amount: up to $5,000,000.

For: The rollout of uDOSE systems under the DIT AgTech’s Full Service Enterprise Plan and as growth capital for revenue expansion.

  • The company has potential orders for over 100 dosing units which are completed and ready to install in Q3 & Q4 of FY2024. Additionally within the current DIT AgTech Enterprise model, there is over 200 dosing units currently generating revenue. The sales pipeline is for over 300 more dosing units within 12 months.
  • $6,000 will be lent from the AgTech Fund to DIT AgTech Limited to build dosing units destined for installation on large scale corporate livestock properties under DIT AgTech Enterprise revenue models to meet current orders. Retail value of the dosing units is $12,000 and equates to a 50% LVR.
  • 5000L supplement tanks are also positioned with the dosing units at installation and are filled every 30-120 days depending on the number of livestock being supplemented via the system.
  • The first $1.5m will enable the manufacture, delivery and installation of 200 uDOSE systems, which will facilitate the sale of 1,000,000 Litres of supplements to generate in excess of $3 million of annual recurring revenue.

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