RLF AgTech sows seeds of success with national distribution deal, $4.5 million raise

• RLF AgTech secures national trading agreement with Nutrien Ag Solutions, vastly increasing distribution
• Deal covers Nutrien’s broad network spanning more than 700 regional and rural outlets Australia-wide
• RLF to raise ~$4.5 million in placement to institutions and sophisticated investors to support growth

Focused on precision agriculture, RLF AgTech (ASX:RLF) has signed a national trading agreement with Nutrien Ag Solutions, a leading provider of rural merchandise and agronomic services in Australia. This will greatly increase RLF AgTech’s distribution footprint (see below).

In preparation for expanded growth, RLF AgTech has also announced firm commitments for ~$4.5 million via an institutional placement of ~90.4 million new fully paid ordinary shares at 5 cents each to sophisticated and institutional investors.

Funding from the placement will be used to develop RLF’s Australian business in paying for raw materials and stock manufacturing, plus expanding the sales and support teams to service the increased number of new locations.

It will also be used to fund the continued expansion of existing manufacturing facilities in both Queensland and Western Australia.

RLF’s distribution footprint upsized

The agreement with Nutrien increases RLF’s distribution footprint by more than one and a half times to more than 1200 outlets.

The distribution deal covers Nutrien’s corporate branches and network of independent member outlets – including the Combined Rural Traders member stores (CRTs) – giving RLF access to more than 700 regional and rural retail locations nationwide.

The national trading agreement provides a framework for supply of RLF’s liquid fertilisers, seed treatments and bio stimulants through Nutrien’s ~400 branches and more than 300 independent stores.

RLF acting managing director Gavin Ball told Stockhead both parties were aligned in their intent to offer practical, science-backed solutions that seek to support the productivity, profitability, and sustainability of Australian farming.

“The agreement validates the strong interest in our products and reflects momentum building in the market,” he said.

Ball said Nutrien was clearly focused on the future needs of their customers and recognises the potential that products like RLF’s bring when implemented into farming practices.

“Farmers are seeking higher yields and improved quality to strengthen on-farm profitability. This is exactly what precision farming, with RLF’s plant nutrition, is designed to deliver,” he said.

“We are starting to see the momentum in the market where growers are starting to adopt these practices, and this is really exciting for RLF and our future. ”

RLF to be a ‘valued supplier’ of Nutrien

The agreement is effective immediately, with product availability, support and training to be progressively rolled out across Nutrien and CRTs over the coming months.

Key benefits of the collaboration include:

• Unmatched distribution reach – with Nutrien’s vast outlets nationwide offering growers with ready access to RLF’s high-performance crop nutrition products.
• Mutual growth – the deal supports RLF’s domestic expansion strategy while strengthening Nutrien’s product offering with a differentiated range of crop inputs.
• Farmer-focused collaboration – The partnership is built around a shared commitment to supporting Australian growers.
• Sustainability at the core – RLF’s advanced formulations are designed to improve fertiliser efficiency, reduce environmental impact, and contribute to regenerative agricultural systems.
• Training and support – RLF and Nutrien will work together to deliver training, promotional programs, and agronomic tools to provide information to growers.

Stuart Moncrieff, Nutrien’s procurement manager specialty fertilisers, said the company was committed to delivering cutting-edge innovations in plant nutrition and soil health in efforts to support its growers’ success.

“We’re pleased to welcome RLF as a valued supplier, bringing advanced solutions that align with our mission to drive sustainable and productive agriculture,” he said.

Rebuilding Australian business for growth

Following a restructure around 12 months ago, which included a full management change, reducing costs and focus on sales and pathways to profit, Ball said RLF was executing on its growth strategy.

Operating four revenue-generating divisions the company regained back the commercial rights and launched RLF Australia in FY25, securing key distribution deals and building a vast network with expanded marketing, technical and logistics support.

In a sign of building momentum RLF delivered a strong finish to FY25 with its June quarter cash receipts up 254% on the previous quarter to $8.9 million.

The company posted positive net cash from operating activities of $800,000 for FY25, a 782% increase on FY24 as its target profitability.

“The Nutrien agreement has the potential to contribute significantly to revenue and contribution towards future profitability,” Ball said.

Placement to support growth

The placement attracted strong demand from both existing shareholders and new investors with numerous new institutional investors joining the RLF register.

The new shares are at 15.3% discount to the last closing price of 5.9 cents per share on August 19 and 23.8% discount to the 15-day VWAP of 6.5 cents per share to that date.

Given strong demand received from the equity raising, RLF will terminate most of its outstanding convertible notes, worth $500,000 to in turn reduce the company’s leverage and assist with providing balance sheet flexibility.

Settlement of the placement is expected to occur on August 29 with new shares to be allotted on September 1.

“Our original plan was a progressive rollout of distribution, but we now have nearly full market coverage, representing a significant step-change for us moving forward,” Ball said.

“We are raising funds to invest in stock, upgrading our manufacturing facility and employ more people to deliver and support in a hugely expanded distribution network.”

At Stockhead, we tell it like it is. While RLF AgTech is a Stockhead advertiser, the company did not sponsor this article.