Ian Trahar has taken a larger stake in his listed agribusiness Seafarms Group while the Perth business taps investors for $10 million.
Seafarms has entered into a debt conversion deal with Mr Trahar, the group’s chairman, through his private company Avatar Finance, which holds an $8.5 million facility agreement with Seafarms.
Under the agreement, Mr Trahar will subscribe for $2.5 million shares in Seafarms in exchange for extinguishing the same amount from the $8 million of the facility that Seafarms has drawn down on.
Mr Trahar is already a major stakeholder in Seafarms.
Seafarms, which is developing its $1.45 billion Sea Dragon prawn project in the Northern Territory, has also raised $8 million from investors through the placement of 133.3 million shares at 6 cents each, and plans to raise a further $2 million by way of a share purchase plan.
The price of the raising represents a 13.4 per cent discount to the company’s five-day volume-weighted average price.
“This equity raising places the company in a strong position to finalise outstanding agreements and to secure project funding for Stage 1 of Project Sea Dragon,” Nr Trahar said.
“Importantly the company remains on schedule to start construction in the dry of 2018.
“The placement highlights the strong professional investor support for PSD, the SPP enables our loyal shareholder base to participate in the issue and the debt to equity conversion highlights my own confidence in this world-class development”.
Shares in Seafarms were 2.9 per cent lower to 6.5 cents each at 10:30am.