"Live bacteria" soil health and animal nutrition firm Terragen Holdings Ltd launches $20m IPO

Australian agricultural microbial products company Terragen Holdings Ltd launches a $20 million initial public offer (IPO) of shares,comprising 80 million shares at 25 cents per share

Terragen has developed and commercialised a range of biological products that use live microbes to address soil health and the productivity of farm production animals

Terragen believes that its suite of biological products can provide farms with a foundation to be more sustainable

QUEENSLAND,Australia,Nov. 5,2019 -- Australian agricultural biotechnology company Terragen Holdings Ltd ("Terragen" or "the Company")has launched a $20 million initial public offer (IPO) of shares ahead of an anticipated listing on the Australian Securities Exchange (ASX) in early December.

Terragen has developed and commercialised a range of biological products that use live microbes to address soil health and help boost the growth,quality and resilience of farm production animals. The Company aims to reduce the reliance of farmers on chemical-based fertilisers,pesticides and antibiotics.

Terragen already has two products on the market in Australia and New Zealand: the soil conditioner 'Great Land' and microbial feed supplement 'Mylo®'. Terragenis also developing veterinary medicines: Lactolin,a teat conditioner to maintain and improve the udders of lactating production animals; and Halo,an anti-inflammatory product to assist dairy cattle with mastitis and companion animals such as dogs with mobility impairments.

Terragen is offering 80 million fully paid ordinary shares at an Offer Price of $0.25 per ordinary share to raise $20 million.

Funds raised under the Offer will be used to further commercialise Great Land and Mylo® in Australia and New Zealand,to further develop and subsequently market Mylo®,Lactolin and Halo in the United States and Europe,and to continue to improve the production efficiency and formulation of Terragen products.

"Terragen provides an important contribution to reduce farmer's dependency on synthetic chemicals for production inputs," said Terragen Chairman,Sam Brougham. "We believe that our biological products can help generate better outcomes for farmers with their crops and livestock and provide better environmental outcomes that will be more acceptable to consumers."

Terragen Managing Director and Chief Executive Officer,Justus Homburg,said Terragen believes that its suite of biological products can provide farms with a means to be more sustainable.

"Terragen is well placed to help unlock a new future for farming," Mr Homburg said. "We produce biological products that provide a foundation for driving agricultural sustainability on farms using organic,chemical-free or conventional farming practices."

Terragen's growth strategy focuses on increasing the scale and distribution networks for Great Land and Mylo® in Australia and New Zealand; rolling out Terragen products in key dairy markets in Australia,New Zealand and the United States;and assessing market potential in selected countries of the European Union.

Terragenhas identified the dairy sector as a key platform for growth due to the large addressable market.

The Offer comprises a fully underwritten Broker Firm Offer,Institutional Offer and Chairman's List Offer. There is no general public offer of shares under the Offer.

The Offer opens on 5 November 2019 and closes on 21 November 2019.

The Joint Lead Managers are Bell Potter Securities Ltd and Evans Dixon Corporate Advisory Pty Ltd.

Potential investors can read the TerragenIPO Prospectus on the Company's website here.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any shares in the Company.

Details of the IPO

The Company will offer 80,000,000 shares at an issue price of $0.25 per share,to raise $20 million before expenses.

To participate in the IPO

The Offer is being made under a Prospectus lodged with ASIC on 18 October 2019 ("Prospectus") and is available at www.terragen.com.au. No general public offer of the shares will be made under the Offer. Offers will be made in,or accompanied by,a copy of the Prospectus.A person should consider the Prospectus in deciding whether to acquire shares.Anyone who wants to acquire shares will need to complete the application form that will be in or will accompany the Prospectus.

Underwriting

The Offer has been fully underwritten by the Joint Lead Managers and Underwriters to the Offer,Bell Potter Securities Limited and Evans Dixon Corporate Advisory Pty Ltd.

Proposed Key Dates*

Opening Date of Offer

5 November 2019

Closing Date of Offer

21 November 2019

Allotment of New Shares-- under the Institutional Offer,Chairman's List Offer and Broker Firm Offer

5 December 2019

Expected dispatch of Shareholder holding statements

6 December 2019

Shares expected to commence trading on ASX on a normal settlement basis

11 December 2019

*subject to change