Karoo Harvest Produce — Investment Opportunity & Terms

The investment will be structured to include comprehensive investor protection mechanisms:

Karoo Harvest Produce (Pty) Ltd Business Plan › Investment Opportunity & Terms

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:

  • Board Representation: Investor(s) holding >20% equity to appoint one board member.

  • 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.

  • Information Rights: Monthly management accounts, quarterly board packs, and audited annual financial statements.

  • Anti-Dilution: Pre-emptive rights on future equity issuances.

  • Tag-Along / Drag-Along: Standard provisions protecting minority and majority shareholder interests on exit.

  • Restrictive Covenants: Founders subject to 2-year non-compete and non-solicitation clauses.

  • 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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