Karoo Harvest Produce — Investment Opportunity & Terms
The investment will be structured to include comprehensive investor protection mechanisms:
Section 15 · Business Plan
Investment Opportunity & Terms
The investment will be structured to include comprehensive investor protection mechanisms:
15.1 Funding Requirement
| Detail | Value |
| Total Funding Sought | R45,000,000 |
| Instrument | Ordinary Equity Shares |
| Minimum Investment | R5,000,000 |
| Use of Proceeds | Land, infrastructure, equipment, working capital |
| Target Close | Q2 2026 |
| First Drawdown | Upon satisfaction of conditions precedent |
15.2 Investor Protections
The investment will be structured to include comprehensive investor protection mechanisms:
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Board Representation: Investor(s) holding >20% equity to appoint one board member.
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Reserved Matters: Supermajority (75%) approval required for material decisions including: capital expenditure exceeding R2 million, related-party transactions, changes to share capital, material contracts, and strategic direction changes.
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Information Rights: Monthly management accounts, quarterly board packs, and audited annual financial statements.
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Anti-Dilution: Pre-emptive rights on future equity issuances.
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Tag-Along / Drag-Along: Standard provisions protecting minority and majority shareholder interests on exit.
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Restrictive Covenants: Founders subject to 2-year non-compete and non-solicitation clauses.
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Escrow: 10% of initial capital held in escrow pending satisfaction of key milestones (water licence, EIA approval).
15.3 Use of Proceeds
| Application | Amount (R) | % of Total | Timing |
| Land Acquisition & Development | 8,000,000 | 17.8% | Months 1–6 |
| Irrigation Infrastructure | 12,000,000 | 26.7% | Months 3–8 |
| Farm Machinery & Equipment | 10,000,000 | 22.2% | Months 4–7 |
| Cold Storage & Pack House | 8,000,000 | 17.8% | Months 5–10 |
| Working Capital | 5,500,000 | 12.2% | Months 8–18 |
| Contingency | 1,500,000 | 3.3% | As required |
| TOTAL | 45,000,000 | 100% |
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