Seafarms raises $10m for prawning project

Perth-based Seafarms Group has received firm commitments for a $10 million capital raising to fund ongoing work at its $1.45 billion Sea Dragon prawn aquaculture project in the Northern Territory.

Ian Trahar-led Seafarms raised the funds through the placement of 142.8 million shares at 7 cents each to Australian and international investors, representing a 8.3 per cent discount to the company’s five-day volume weighted average price.

“The company intends to use the proceeds raised to fund the development and expansion of Sea Dragon, including fast tracking stage two development, bringing forward early capital work programs and associated works associated with securing tenure and access, and further domestic and international marketing and brand development for the project,” Seafarms said in a statement.

The company plans to complete a bankable feasibility study on Sea Dragon by the third quarter of the year.

Bell Potter Securities and Euroz Securities acted as joint lead managers to the raising.

Seafarms shares were 7.8 per cent lower to 7 cents each at 10:15am.