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July 7, 2015


Seafarms Raising $12.3 Million to Develop Sea Dragon Project




The Seafarms Group has announced that it plans to raise $12.3 million to start the development its Sea Dragon Project.  A private placement valued at $4.5 million will be offered to professional and sophisticated investors, and rights (shares) valued at $7.8 million will be offered to retail investors.  The private placement will be priced at seven cents a share, and the rights issue will be priced at 6.5 cents a share.  The funds will be used for a feasibility study for the development of the company’s Sea Dragon project, to repay $3.5 million to an entity controlled by chairman and major shareholder Ian Trahar, and for general working capital.  Over the past two weeks, shares of Seafarms soared almost 40 percent to a high of 10.5 cents, but fell 18 percent to 8 cents, after it announce this new $12.3-million offering.


Seafarms’ Sea Dragon Project plans to grow giant tiger shrimp (Penaeus monodon) using an integrated production system that will include a broodstock facility, hatchery, growout ponds and processing plant.


The company has said it needs a capital investment of $120 million for the first phase, involving 1,000 hectares of growout ponds that will produce 10,000 metric tons of shrimp a year.


It estimates the total cost of the project will reach $1.6 billion based on 10,000 hectares of growout ponds producing more than 100,000 tons a year.


Source: The West Australian.  Seafarms Seeks $17M for Prawn Plan.  Brad Thompson.  July 7, 2015.

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