Free Eyre Ltd, the grower-owned development business established in 2006 by Eyre Peninsula grain growers, is pleased to announce the release to sophisticated investors for consideration, investment in Eyre Peninsula’s only grain-only port, Port Spencer.
Investors in this early round will not only benefit from a pricing discount on the shares prior to the Institutional raise, but will also be well placed to participate in the margins created from a low cost, competitive storage and export site on Eyre Peninsula.
The Project has been enabled by the opportunistic acquisition of the former Centrex Metals port site, in June of this year. The Port will been funded initially by seed capital raised by subscriptions in Ordinary shares in FEL, the subject of this offer (“the Share Offer”), and $2m of convertible notes issued by FEL under a separate private placement managed by Baker Young Stockbrokers.
FEL will oversee the Project and steer the final capital raise in the new entity, Peninsula Ports Pty Ltd (PPPL), to enable the construction of the new Port and ensure that the appropriate management and corporate governance structures are in place.
FEL ultimately intends to hold close to 25% of the shares in PPPL after the major equity raise from institutional investors in early 2020, at which point PPPL will trade independent of FEL.
In correspondence to FEL shareholders, FEL Chairman John Crosby highlights, “It is important to note, that unlike other proposals for the region, ours is a specialist grain-only port and not reliant on other commodities to make it viable. Importantly also, it is the only port alternative which allows and encourages grain growers and other individuals to invest in, and have a say, in the future of grain storage and handling on the Eyre Peninsula.”
Port Spencer will provide a modern, cost effective and competitive pathway for the export of grain from the heartland of Eyre Peninsula. Projections forecast road freight savings and reduced grain handling charges, resulting in $35 million in annual savings to the growers of Eyre Peninsula.