Seafarms to raise $17m for prawns project

Local aquaculture firm Seafarms Group has announced plans to raise up to $16.6 million, with major shareholders Ian Trahar and Paul Favretto committing to a large portion of the raising.

Seafarms, which is planning to grow black tiger prawns in the Northern Territory, will raise the funds through the placement of about 85.7 million shares at 7 cents each to bring in $6 million, and a two-for-nine entitlement offer at 6.5 cents each to raise up to $10.6 million.

The placement will be made to sophisticated clients of the joint lead managers, Euroz Securities, Moelis & Company, and Wilson HTM.

Mr Trahar, the company’s executive chairman, and Mr Favretto, a non-executive director, will take up all their rights under the entitlement offer for a total commitment of $5.2 million.

Seafarms plans to use the proceeds raised to complete a bankable feasibility study on its $1.45 billion Project Sea Dragon, and repay an existing $3.5 million facility owed to an entity controlled by Mr Trahar.

Post completion of the raising, Mr Trahar’s interest in Seafarms will grow to 49.1 per cent.

Seafarms shares closed 18.3 per cent lower to 8 cents each.