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- Seafarms Group (SFG) looks to raise up to $105 million to construct stage 1a of its Project Sea Dragon in the Northern Territory
- Once fully developed, the project will become one of the largest black tiger prawn operations in the world
- Up to $90 million will be raised over a two-tranche placement to institutional and sophisticated investors
- Alongside the placement, eligible shareholders may participate in a share purchase plan to raise another $15 million
- Seafarms remains in a trading halt which will be lifted by June 25 and company shares last traded at 8.6 cents on June 22
Seafarms Group (SFG) is looking to raise up to $105 million through a placement and share purchase plan.
The sustainable aquaculture company entered a trading halt this morning ahead of announcing the capital raise.
Soon after, Seafarms released the details in full and explained the raise will support the construction for stage 1a of its Project Sea Dragon in the Northern Territory.
Once fully developed, this multi-site project is set to become one of the largest black tiger prawn operations in the world.
“We are at the beginning of creating a significant industrial scale food production business. Global demand for prawns continues to expand, particularly in Asia,” Executive Chairman Ian Trahar said.
“The genetics we have spent many years developing will result in a product with true premium characteristics both in terms of size and price.”
Stage 1a of Project Sea Dragon is expected to be completed in the third quarter of 2023.
The placement will be conducted over two tranches. The first will issue around 363 million new shares at 5.5 cents each to institutional and sophisticated investors to raise $20 million.
Subject to shareholder approval, the second tranche will issue investors with about 1.27 billion to raise $70 million.
The placement comes with free unlisted options on a three-for-five basis. The options have an exercise price of 9.75 cents and will expire three years from the date of issue.
Importantly, Mr Trahar has committed to subscribe for $20 million under the placement and will convert $15.2 million of existing debt into equity which will strengthen the company’s balance sheet.
Additionally, AAM Investment Group, which’s the owner of one of the proposed Project Sea Dragon farms, will participate in the placement through its Pastoral Development Trust.
Alongside the placement, Seafarms will offer eligible shareholders the opportunity to participate in a share purchase plan to raise another $15 million.
Seafarms remains in a trading halt which will be lifted by Friday, June 25. Company shares last traded at 8.6 cents on Tuesday, June 22.
