Seafarms raises more funds for prawn project

Local aquaculture firm Seafarms Group has announced its second capital raising in the past two months, this time tapping investors for $11 million to fund ongoing work at its $1.45 billion Sea Dragon prawn project.

Seafarms said today it had received firm commitments for the placement of 122.4 million shares at 9 cents each to raise $11 million, representing a 14 per cent discount to the company’s five-day volume weighted average price.

The raising was led managed by Bell Potter Securities.

The proceeds of the raising will be used for ongoing development work at the company’s Sea Dragon prawn aquaculture project in the Northern Territory, including completion of a bankable feasibility.

The raising follows news in June that Seafarms had completed a $10 million placement for Sea Dragon.

Last month, Seafarms started work on a $1.2 million upgrade of its prawn quarantine facility in Exmouth (which forms part of Sea Dragon), which will be used to introduce, hold, rear, test and screen wild broodstock animals for pathogens.

Seafarms shares were 5 per cent higher to 10.5 cents each at midday.