Seafarms raises $12.5m

Aquaculture company Seafarms Group has completed a $12.5 million capital raising ahead of the rapidly evolving COVID-19 situation to keep its operations afloat over the next 12 months.

Seafarms, which announced the raising in February, said the funds would go towards development of its Sea Dragon prawn project, spread across Western Australia and the Northern Territory.

The project’s quarantine and founder stock centre as well as processing plant are located in WA.

Seafarms Group said the company would use the funds to continue operations during what could be a prolonged period of ongoing market volatility in response to the rapid development of COVID-19. 

It said some of the proceeds would go towards further expansion of its founder stock centre in Exmouth and development of its maturation centre in Bynoe Harbour.

The company issued around 416.6 million shares, priced at 3 cents per share, to raise $12.5 million.

It had entered into a subscription agreement with Avatar Industries, controlled by Seafarms chairman Ian Trahar, which subscribed for $5.6 million worth of shares under the placement.

The issue of shares is subject to shareholder approval, given Mr Trahar has a 24.3 per cent relevant interest in Seafarms shares.

The company said it would seek shareholder approval at an EGM to be held in May.

Seafarms shares were down 5.3 per cent to 3.6 cents per share at 1:35pm AEDT.