Mermaid raises $36.3m

Mermaid Marine Australia Limited has completed an institutional placement to raise $36.3 million, including a $8.9 million conditional component which is subject to shareholder approval.

Full announcement below:

Mermaid Marine Australia Limited ("MMA") has completed an institutional Placement to raise gross proceeds of $36.3million, including a $8.9 million conditional component which is subject to shareholder
approval. Proceeds will be used to fund the proposed capital expenditure for the
expansion of the Dampier Supply Base and to support the company's future growth
plans.
Strong levels of demand from domestic and global institutions facilitated the
increased raising above the $25 million previously announced. The additional funds
raised will permit MMA to take advantage of other potential growth opportunities,
including vessel acquisitions.
The placement was priced at $1.45 per share, a 3.3% discount to the 5 day VWAP
and will result in the issue of 25.0 million new ordinary shares which will rank pari
passu with existing ordinary shares. The issue represents 16.8% of existing issued
capital.
Merrill Lynch acted as lead manager and underwriter to the Placement, which was
conducted via a bookbuild process. Euroz Securities and Patersons Securities acted as
brokers to the offer.
MMA's Managing Director and Chief Executive Officer, Jeffrey Weber, commented that
"demand from new and existing investors was very strong and an endorsement of our
integrated services model and growth strategy. The Placement was upsized due to
this demand and gives the company an increased capacity to pursue other growth
opportunities. MMA is now well capitalised to deliver on our strategy with the support
of a broadened shareholder base."
The Placement will be settled in two tranches:
Unconditional Tranche: 18.85 million shares to be settled on 7 May 2008 and
Conditional Tranche: 6.15 million shares which will be settled subject to
shareholder approval at an extraordinary general meeting of MMA
shareholders to be held as soon as reasonably practicable in June 2008
MMA plans to offer existing shareholders the opportunity to participate in a Share
Purchase Plan, details of which will be announced shortly.
Trading in MMA shares is expected to resume on the Australian Securities Exchange
on Monday 5 May, 2008.