Renounceable Rights Issue Announcement and Market Update

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352

Phone: 06 765 6199
Web: http://www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz

23 November 2020


announce@nzx.com



RENOUNCEABLE RIGHTS ISSUE CAPITAL RAISE AND MARKET UPDATE

Rights Issue Capital Raise

On 9 November 2020 Allied Farmers Limited’s (NZX:ALF) (Allied) advised in its 2020 Notice
of Annual Meeting that it will offer eligible shareholders the opportunity to participate in a
pro rata renounceable rights issue at an issue price of $0.50 cents per share through a rights
issue of 1 new ordinary share for every 3 existing ordinary shares held.

Allied is pleased to now confirm that it will open the pro rata renounceable rights issue in
early December 2020.

Shareholders will be able to apply for additional shares at the same price of $0.50 cents per
share through an oversubscription facility to take up unexercised rights, and any rights that
shareholders do not wish to take up will be quoted and able to be bought and sold on the
NZX.

Also as previously announced, if approved at the 2020 Annual Meeting, and most likely after
the renounceable rights issue, Allied proposes to commence placements over the next 12
months of up to 10 million Allied Farmers shares to existing shareholders and new investors
at the same price of $0.50 cents per share. These placements will potentially raise up to
$5,000,000 of new capital for Allied Farmers.

The timetable for the renounceable rights issue offer is as follows:

Announcement of the Offer 23 November 2020
Rights trading commences on the
NZX Market
30 November 2020
Record Date for determining
eligibility
7:00 p.m. on 1 December 2020
Opening Date and mailing/emailing
of Offer documentation (“Ex-Date”)
2 December 2020

Rights trading ends on the NZX
market
11 December 2020
Closing Date (last day for online
applications, or for receipt of the
Acceptance Form, with payment),
unless extended
17 December 2020
Allotment and issue of New Shares 24 December 2020
Anticipated date of quotation of New
Shares
24 December 2020
Statements mailed 31 December 2020

Market Update

In the first 6 months of this financial year prices for Allied’s processed veal and related
products, appreciable proportions of which are ultimately sold through food service channels
and other Covid affected markets internationally, have been significantly lower. The veal
processing business contribution has always been sensitive to market price movements
outside of our control, and accordingly, because it makes up a significant part of revenues in
the first 6 months of the financial year, in turn the interim result has always being
disproportionately impacted by the performance of this business.

The ongoing effects of the drought earlier this calendar year and lower market prices for
livestock have also adversely affected commission revenue in our livestock agency business.
However, recently we are seeing more encouraging signs with favourable weather and
growth conditions contributing to an improvement in farmer sentiment, sale tallies and
prices. This gives us cautious confidence in a stronger second half of year, which is when the
majority of livestock contribution is normally generated.

As a result of these trading conditions, particularly in veal processing, Allied expects that the
6 months result to 31st December 2020 will be significantly below the corresponding prior
period, with an after tax profit in a range of $200,000 - $400,000 (assuming a successful NZ
Rural Land Company Initial Public Offering).

Richard Perry
Chairperson

Mr. Perry can be contacted for investor and media enquiries on 06 765 6199.


Attachments:

Corporate Action Notice
Cleansing Notice

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NZX LIMITED
Level 1, NZX Centre
11 Cable Street
Wellington New Zealand

23 November 2020

NOTICE PURSUANT TO CLAUSE 20(1)(a) OF SCHEDULE 8 TO THE FINANCIAL MARKETS
CONDUCT REGULATIONS 2014

1. Allied Farmers Limited (NZX: ALF) (Allied Farmers) has announced that it will
undertake a pro rata 1 for 3 renounceable rights offer of fully paid ordinary shares of
the same class as already quoted on the NZX Main Board of NZX Limited (the Offer).
The Offer is not underwritten.

2. Pursuant to clause 20(1)(a) of Schedule 8 to the Financial Markets Conduct
Regulations 2014 (Regulations), and the Financial Markets Conduct Act 2013 (FMCA),
Allied Farmers states that:

a. Allied Farmers is making the Offer in reliance upon the exclusion in clause 19
of Schedule 1 to the FMCA and is giving this notice under clause 20(1)(a) of
Schedule 8 to the Regulations.

b. As at the date of this notice, Allied Farmers is in compliance with:

i. the continuous disclosure obligations that apply to it in relation to
ordinary shares in Allied Farmers. There is no information that is
“excluded information” as defined in clause 20(5) of Schedule 8 to the
Regulations.

ii. its financial reporting obligations (as defined in the Regulations).

3. The Offer is not expected to have any material effect or consequence on the control
of Allied Farmers.


Richard Perry
Chairperson

Mr. Perry can be contacted for investor and media enquiries on 06 765 6199

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Corporate Action Notice
(Other than for a Distribution)


Page 1 of 2
Section 1: issuer information (mandatory)
Name of issuer Allied Farmers Limited
Class of Financial Product Ordinary Shares
NZX ticker code ALF
ISIN (If unknown, check on NZX
website)
NZALFE0001S1
Name of Registry Link Market Services Limited
Type of corporate action
(Please mark with an X in the relevant
box/es)
Share purchase
plan
Renounceable
Rights issue
X
Capital
reconstruction
Non
Renounceable
Rights issue

Call Bonus issue
Record date 7:00 pm 1/12/2020
Ex-Date (one business day before the
Record Date)
30/11/2020
Currency NZ$
Section 2: Rights issue (delete if not applicable)
Number of Rights to be issued 5,951,576
Number of Financial Products to be
issued under the Rights issue
5,951,576 ordinary shares
ISIN of Rights Security (if applicable) NZALFE0008S6
Minimum entitlement N/A
Entitlement ratio (for example 1 for 2) New 1 Existing 3
Treatment of fractions Rounded up
Subscription price $0.50 per share
Letters of entitlement mailed 2/12/2020
Offer close 17/12/2020
Quotation Date
1
(if applicable) Market open on:
30/11/2020
Allotment Date Market open on:
24/12/2020

1
The Quotation date for Rights will be the Ex Date.

2 of 2
Section 7: Authority for this announcement (mandatory)
Name of person authorised to make this
announcement
Richard Perry
Contact person for this announcement Ross O’Neill
Contact phone number 021 424829
Contact email address Ross.o’neill@alliedfarmers.co.nz
Date of release through MAP 23/11/2020