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Read the full risk warningAgro-processing · Equity
Kano Agro Processing
Tomato paste processing for the Kano–Kaduna corridor · Kano State, Nigeria
Company overview
Kano Agro Processing Limited operates a 40-tonne-per-day tomato concentrate line supplying processors and retail brands in northern Nigeria. The company was incorporated in 2019 and has traded for four full financial years.
The company buys fresh produce from an out-grower network of 1,400 smallholder farms, processes it into aseptic concentrate, and sells to five industrial offtakers under annual supply agreements. Revenue is seasonal, concentrated between February and July.
Management team
Amina Yusuf
Managing Director
14 years in agro-processing operations; previously plant manager at a listed food group.
Chidi Okonkwo
Finance Director
Chartered accountant, 11 years in manufacturing finance and treasury.
Halima Bello
Head of Out-grower Network
Agronomist; built the company's 1,400-farm supply base from 2019.
Use of proceeds
| Application of funds | Share of raise |
|---|---|
| Second processing line and installation | 46% |
| Working capital for the 2027 buying season | 28% |
| Cold storage expansion | 14% |
| Offer costs and platform fees | 5% |
| Compliance, audit and reporting reserve | 7% |
Instrument, price and rights
Ordinary shares at ₦120 per share, 416,667 shares offered
One vote per share, pro-rata dividend rights, no preference or anti-dilution rights
Capital structure and ownership
| Holder | Pre-offer stake |
|---|---|
| Founders (Yusuf family) | 58% |
| Sahel Agri Partners (core investor) | 22% |
| Employee share trust | 6% |
| Existing angel investors | 14% |
Financial condition
- Audited revenue of ₦612m for the year ended 31 December 2025, up from ₦437m in 2024.
- Gross margin of 24%; profit after tax of ₦38m in 2025.
- Net debt of ₦96m, of which ₦61m is a working-capital facility repriced annually.
- A successful raise at target would fund the second line without additional bank debt; a raise at the minimum threshold would fund the line but leave working capital unchanged, and a revised use-of-funds plan would be filed within one week of close.
Risk factors specific to this Fundraiser
- Revenue is concentrated: the two largest offtakers accounted for 61% of 2025 sales.
- Input prices move with rainfall and fuel costs, and the company does not hedge either.
- The second processing line depends on imported equipment and is exposed to foreign-exchange availability and clearing delays.
- The company has never operated two lines simultaneously and may not achieve the projected throughput.
- There is no market for these shares. You may never be able to sell them.
Related-party transactions
- The Kano warehouse is leased from a company controlled by the Managing Director's family at ₦7.2m per year; an independent valuer confirmed the rent is at market.
- Sahel Agri Partners, holding 22%, also supplies packaging under a contract worth ₦31m in 2025.
Exit options for investors
- There is no secondary market. A one-year minimum lock-in applies from allotment.
- The company has stated an intention, but no obligation, to pursue a trade sale or listing within five to seven years.
- Permitted early transfers are limited to the Fundraiser, a qualified institutional or high net worth investor, a registered offer for sale, or a family member or trust.
Investor questions and answers
Questions and answers are public and moderated by PennyTree. Posting opens once investor accounts go live; the thread below shows questions already answered by the Fundraiser.
What happens to the second line if only the minimum threshold is reached?
Verified investor
The line remains fully funded at the minimum threshold. Working capital would instead be met from the existing bank facility, and we would file a revised use-of-funds plan with PennyTree within one week of close.
Amina Yusuf, Managing Director
Are the offtake agreements binding for volume or only for price?
Verified investor
They fix price bands and quality specifications annually. Volume is indicative, not contractually guaranteed. This is reflected in the concentration risk factor above.
Chidi Okonkwo, Finance Director
Documents
- Offering document (PDF)Full disclosure pack, 62 pages
- Audited financial statements 2023–2025Prepared under IFRS for SMEs
- CAC certificate and MEMARTCorporate Affairs Commission filings
- Independent valuation of leased warehouseRelated-party support document
Downloads become available to registered, verified investors when accounts go live.