Osborne Park-based Cell Aquaculture has secured an initial $2.4 million investment from a European strategic investment partner.
Osborne Park-based Cell Aquaculture has secured an initial $2.4 million investment from a European strategic investment partner.
The Dutch based private equity fund, Linnaeus Capital Partners, will become a major Cell Aquaculture shareholder having acquired 25 million shares at 9.6 cents per share for its initial investment.
Cell Aquaculture's trading range was about 13 cents to 14 cents at the time of offer. The company's shares were unchanged at 19c at 11:35 AEDT.
Cell Aquaculture said the investment was the first stage of a planned long term funding and investment strategy, and shares will be subject to a voluntary 12 month escrow period.
Linnaeus holds significant investments across a range of industries in small to medium cap companies. It targets high growth potential and now plans to develop a global presence in aquaculture.
Linnaeus Director, Anita Hamilton stated, "we see tremendous opportunity in the aquaculture industry particularly in the land-based recirculating sector. Following thorough due diligence and having searched the world for a suitable aquaculture investment, we believe that Cell Aquaculture is exceptionally well positioned to capitalise on the booming aquaculture industry."
"Cell Aquaculture has developed unique technologies, a compelling business model and by collaborating with a strong investment partner, the company can now rapidly develop a substantial international aquaculture business."
The principals of Linnaeus will be meeting with Cell Aquaculture representatives in both Malaysia and Australia in coming weeks to review the company's growth plans and develop a further funding and investment strategy. Discussions will also include European expansion opportunities.
Cell Aquaculture Executive Chairman Perry Leach stated, "this is an important milestone for the company. Partnering with a well-resourced cornerstone investor that shares our vision will enable the company to accelerate its growth plans."
"The additional investment strengthens Cell Aquaculture's position as the company progresses toward the final stage of securing its large scale Malaysian venture."
The company's consolidated cash position is now approximately $3.4 million.
