Cervantes Seafood to raise $1.5m in recapitalisation offer

Lobster exporter Cervantes Seafood Ltd aims to raise $1.5 million through a placement and share offer to recapitalise the company and allow it to recommence trading on the Australian Stock Exchange.

The company, which has been in administration since 2004, was approached by South Perth-based Investment Promotions Pty Ltd in late 2006, with a bail-out proposal - with the possibility of re-listing on the ASX, provided it had a minimum of $1 million after debts and liabilities.

Cervantes Seafood will offer 30 million shares at 0.5 cents each along with a further 30 million free attaching options in the placement, raising up to $150,000 from Investment Promotions and its nominees.

It will also offer 135 million shares at one cent each to raise $1.3 million.

The company has obtained a stay of its winding up until May 9 to permit it to complete the capital raisings.

Cervantes Seafood has 8 cray pots which are leased out earning income and a seafood
processing licence which can be activated when funds are available.

The company has no creditors other than the Liquidator and the costs of issuing a prospectus.

It receives its legal advice from Steinepreis Paganin.

The minimum subscription for the Share Offer is full subscription, while there is no minimum subscription for the Placement. The two offers are not conditional on each other.

Subject to completion of the Share Offer, the Company will have sufficient working capital to carry out its operations going forward and will also have sufficient funds to look at complementary acquisitions or new acquisitions in other areas, though it has no targets as yet.

The offer opened on April 11, with the share offer to close May 1, and the placement offer closing June 1.