CropLogic pushes button on prospectus

Christchurch technology company CropLogic’s long-awaited plans are coming to fruition with the launch of a prospectus to raise A$8 million (NZ$8.45m).

Chief executive Jamie Cairns will lead a roadshow presentation in New Zealand and Australia over the next fortnight.

CropLogic helps improve crop yields by combining research and technology with field support teams to provide accurate advice to growers.

It is one of several technology companies within the Powerhouse Ventures investment group, which is 22 per cent owned by the Christchurch City Council’s Canterbury Development Corporation.

CropLogic has refined technology developed over 30 years, initially by a Crown Research unit called the Institute for Plant and Food Research.

It has held 600 field trials, gathering information with sensors connected to satellite communications, which it processes to help growers make decisions about fertilisers and moisture.

Successful trials of the CropLogic system have been completed on potatoes in China, the United States, Australia and New Zealand with four multinational processors. The company is poised to start trials of its system for other commodities such as corn, wheat, soybean and cotton.

CropLogic lodged its prospectus with the Australian Securities and Investments Commission, and it plans to follow parent company Powerhouse and list on the Australian Securities Exchange.

If the raising is successful the company will be worth more than $20m, based on the combined value of all shares on the market.

The prospectus is offering 40 million shares at an issue price of 20 cents a share, with the minimum share subscription at $5m.

The money will be used to fund further market research and development, ASX listing costs, and working capital.

Cairns said one of the common criticisms of tech ventures was their inability to convert the technology into revenue.

‘‘Our strategy provides us with the opportunity to use our technology to transform the business model of the acquired companies before introducing additional services to their clients,’’ he said.

‘‘It is a two-phase approach that we believe reduces the cost and risk of market entry.’’

CropLogic will begin its roadshow presentation in Auckland and Wellington in the week beginning July 17, and in Melbourne and Sydney in the week beginning July 24.