• Proposed acquisition of four private agricultural companies to create a larger, more diversified business
• Strong performance of pistachio development project with 482 hectares now planted
• Continued progress on Northern Australia cropping development with first cotton crop harvested
• Operating cash flow deficit for the quarter due to costs associated with 2026 crop establishment and pistachio development

Duxton Farms Ltd has released its quarterly activities and cash flow report for the first quarter of FY2026. The key highlights include the proposed acquisition of four private agricultural companies - Duxton Dried Fruits Ltd, Duxton Orchards Pty Ltd, Duxton Bees Pty Ltd, and Duxton Walnuts (Cobram) Pty Ltd - which is expected to create a larger, more diversified business with greater visibility on the ASX. The company's shareholders have voted in favour of the merger. The report also provides updates on the company's operations, including the strong performance of the pistachio development project at Piambie, with 482 hectares now planted, and continued progress on the Northern Australia cropping development, with the first cotton crop harvested. The company recorded an operating cash flow deficit for the quarter of $5,744,000, which can be attributed to costs associated with the establishment of the 2026 winter crop, land preparation for the 2026 summer crop, and further development of the pistachio plantation at Piambie.The report also includes details on related party transactions, including payments to Duxton Capital (Australia) Pty Ltd for financial services and management fees, Duxton Water Ltd for water charges, Duxton Walnuts for agriculture services and advice, Mountain Valley Station for property lease, and MG Corporation for property lease.

Duxton Farms Ltd has not provided any high-importance, price-sensitive forward-looking financial metrics or guidance in this quarterly report.

The report does not include any comprehensive forward-looking outlook statements. However, it does mention that the hot and dry conditions are expected to benefit the establishment of the FY2026 cotton crop at the Forbes aggregation, and that the company has sufficient water in its system to maintain a fully irrigated cotton crop in dry conditions.