Core Breeding Centre and Broodstock Maturation CentreBynoe Harbour, Northern Territory

Seafarms Group launches $105m fundraising effort to start major NT prawn farm

AUSTRALIA
Friday, June 25, 2021, 16:00 (GMT + 9)

Seafarms Group announces share placement to raise A$90 millionwith a Share Purchase Plan to raise a further A$15million.

Investment Highlights

• Seafarms is seeking to raise A$90 million (with the right to accept oversubscriptions) by way of a placement to institutional and sophisticated investors through a two tranche placement at 5.5 cents per share (“cps”) with a free unlisted 3 for 5, three year option exercisable at 9.75 cps.
• Funds sought to immediately commence construction of Seafarms’ Project Sea Dragon (“PSD”) Stage 1a development program in northern Australia to drive towards first PSD prawn harvest by the third quarter of 2023.
• Eligible shareholders can participate in the capital raising via a share purchase plan (“SPP”) to raise an additional A$15 million (with the right to accept oversubscriptions) at 5.5 cps also with a free unlisted 3 for 5, three year option exercisable at 9.75 cps.
• The capital raising will be underpinned by largest shareholder and Seafarms Chairman, Mr Ian Trahar, who will invest $20 million into the capital raising and convert all loans approximating $15.2 million to equity on the same terms as the placement.
• An extraordinary general meeting will be held in late July to approve the placement, SPP, debt conversions and the issue of unlisted options.

Image: courtesy Seafarms Group

Sustainable aquaculture company Seafarms Group Limited (ASX:SFG) (“Seafarms” or “the Company”) is pleased to announce the company is undertaking a capital raising to commence construction for Stage 1a of its world class Project Sea Dragon at Legune station in the Northern Territory.

Project Sea Dragon remains a Tier 1 development asset of global significance and once fully developed the multiple-site project will become one of the largest black tiger prawn operations in the world.

Photo: courtesy Seafarms Group

This capital raising, undertaken by Bell Potter Securities Limited as sole Lead Manager, enables the Company to commence various construction activities for PSD that will drive towards first PSD prawn harvest by the third quarter of 2023 with first full harvest by the fourth quarter of 2023. All necessary permits and approvals are in place to enable construction to begin.

Mr Ian Trahar, Executive Chairman of Seafarms, comments: “the capital raising will launch Seafarms into the first construction activities towards making PSD 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.

The genetics we have spent many years developing will result in a product with true premium characteristics both in terms of size and price”

“My endorsement and belief in the ultimate success of PSD has been consolidated through my strong participation in the current capital raising alongside the owners of Legune Station and strong support from a number of other long term existing shareholders.”

“This capital raising will transform Seafarms towards a potential multinational business and accordingly the Board has resolved to refresh the organisation with priority at management level and Board level to enable the best delivery of the PSD potential for all shareholders.”

Read the full ASX Announcement here

www.seafood.media

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