West Perth-based Marine Produce Australia Ltd is set to fast track its barramundi farming expansion strategy following the aquaculture company’s raising of $4.5 million.
West Perth-based Marine Produce Australia Ltd is set to fast track its barramundi farming expansion strategy following the aquaculture company’s raising of $4.5 million.
Marine Produce managing director John Hutton told WA Business News the fundraising provided the company with the ability to commercialise its salt water barramundi operations at Cone Bay in the Buccaneer Archipelago near Derby.
“We currently have six sea cages constructed with 300,000 barramundi in the water,” he said.
“By June 30 2007, we will look to have 12 sea cages constructed and look to harvest around 100 tonne of fish.”
Mr Hutton said the company would initially focus on developing a presence nationally before exporting overseas.
“While local buyers are showing interest, the product is more appreciated overseas than here,” he said.
“We will firstly be looking towards Europe [as an export market] where we have set up relationships for the last few years.”
Mr Hutton said the company’s prawn farming business was currently placed in a care and maintenance mode.
“The company is currently accessing its options to see what the best way to go forward is,” he said.
The capital raising took place through a share issue with existing shareholders applying for over 93 million shares and many applying for shortfall shares.
The issue was for up to approximately 227.8 million shares at 2 cents each – at half the price of a $3 million capital raising undertaken in March ‑ on the basis of one share for each one share held, and was underwritten by Argonaut Capital Ltd.
As per the prospectus and underwriting agreement, Argonaut placed the remaining shares making the issue fully subscribed.
Between November 24 and December 2, Mr Hutton increased his indirect interest in Marine Produce through the purchase of 97.4 million shares for approximately $1.95 million by way of the share issue, increasing his interest in the company to 30.5 per cent.
The purchase saw Mr Hutton more than triple his portfolio and he now holds 135.5 million shares valued at approximately $2.6 million.
Marine Produce non-executive chairman Miles Kennedy, who is also executive chairman of Kimberley Diamond Company NL, increased his indirect interest by 4.4 million shares to approximately 8.9 million shares for $88,806, while directors Nicholas Miller and John Drummond increased their interests by 2.85 million and 665,000 shares for $57,000 and $13,300 respectively.
The company has experienced a turbulent year following a number of board changes which included the resignations of managing director Peter Fraser and director Michael Firmin as well as company secretary Hugh Lennerts.
Under the changes, Mr Hutton and Mr Miller, who left their positions of managing director and non-executive director respectively in February, returned, while Mr Drummond, the company’s lawyer was appointed as a new director and Jean Mathie was appointed company secretary.
Mr Miller and Mr Hutton are also managing director and director/major shareholder respectively of Maxima Pearling Company, highlighting the close links between the two companies.
In February, Marine Produce planned to raise $9 million for capital expenditure, raising $3 million in March through a four cents per share rights issue, which included a bonus issue of options to shareholders.
The first tranche of options to raise a further $3 million was due to be exercised in September but was withdrawn when the share price fell below the exercise price of four cents.
Marine Produce posted a net loss of over $5.3 million for the 2005-06 financial year after a net loss of $2.5 million in 2004-05.
