RLF AgTech IPO - 2022

Hi all,

There are a number of reasons why I think RLF AgTech is a solid investment and why I will be participating in this IPO.

Clear value proposition to farmers:RLF AgTech states that their products can naturally increase yields by up to 30% as well as increase crop nutrient content. If this is true, farmers can essentially grow a greater amount of produce & at a higher quality. The significance of this cannot be underestimated. As always certain groupings of individuals will be sceptical of the technological innovation, but there will be innovators and early adopters interested in trialing RLF's products to see first-hand whether their products deliver as promised. If these farmers experience great results the early majority will have extra assurance and adopt RLF's products and this is where it will become interesting.

Carbon Exposure:
The added bonus of an investment in RLF Agtech is ownership of RLF Carbon. The organisation is cleverly utilising its products to store carbon & deliver a long-term benefit to the atmosphere.

According to the company, millions of hectares have already been treated using RLF’s products. The key step moving forward will be calculating and measuring how RLF can potentially receive carbon credits. According to the Clean Energy Regulator " you receive carbon credits each time you report increases in soil carbon levels over a period of 25 years. Your project must store carbon for 25 or 100 years to deliver permanence.

RLF must demonstrate that their products can enhance crop growth and then measure the difference in soil carbon levels between an RLF treated crop and a non-RLF treated crop. If they can successfully quantify this the entity can potentially earn X carbon credits for the sale of X litres of their products or a similar methodology.

So the question then becomes centered around carbon credits. If you aren't already aware the Clean Energy Regulator has already shortlisted 13 companies to participate in the development of the Australian Carbon Exchange. The exchange will operate in a similar way to online stock exchanges and will accelerate emissions reduction, after all, Australia is chasing Net Zero Emission by 2050.

On the 23rd of December 2021, the price of one-carbon credit was $49 AUD.


As always DYOR, I have done my research and believe this presents value.



Addittional Information:
http://www.cleanenergyregulator.gov.au/Infohub/Markets/australian-carbon-exchange
https://www.minister.industry.gov.au/ministers/taylor/media-releases/australias-plan-reach-our-net-zero-target-2050
https://www.theguardian.com/australia-news/2021/oct/30/australias-2050-net-zero-emissions-plan-relies-on-gross-manipulation-of-data-experts-say