Clean Seas Tuna’s share purchase plan (SPP) has closed heavily oversubscribed, raising $7.6 million for the cash-strapped kingfish processor.
The company received SPP applications for $14.658 million.
“Directors have resolved to accept the maximum amount that can be accepted under the SPP,” the company said in a statement to the stock exchange today.
“Under the terms of the SPP, the Directors reserved the right to accept up to the limit available under an SPP of 30 per cent of Clean Seas’ shares on issue, being 240,527,119 shares raising $7,696,868 at the SPP issue price.
“As a result of the oversubscription, applications will be scaled back on a pro-rata basis by approximately 47.5 per cent.”
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The issue price for shares under the SPP is 3.2 cents per share.
Clean Seas directors will also make a further placement of $2 million to nominees of the underwriter, bringing the total gross amount raised to $9,712,621.
“Following completion of the SPP and placement, the company has further strengthened its sound financial position. The funds raised will be used to support the growth of the company’s core Kingfish business to a production level of 1,500 tonnes per annum,” the statement said.
“Clean Seas is on track to achieve this production objective and be profitable by 2015 with the aim of continuing to further increase kingfish production over the next five years.
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“The company’s cash position is forecast to be sufficient to fully fund the company’s announced yellowtail kingfish production strategies.”
The SPP price of 3.2 cents is a substantial discount to the closing share price yesterday of 4.6 cents and recent trading at around the 7 cents mark.
For those shareholders, however, who bought into the West Coast fishing and research group when it first listed in late 2005 at $0.50 and peaked in 2007 at $2.00, its been a tough ride.
After shedding cash on its speculative research program Clean Seas shares bottomed out at one cent.
Its speculative southern blue fin tuna breeding programs have since been deferred as it seeks to concentrate on its kingfish fish production programs.
In May this year the company said a $3 million rights issue gave the cash-strapped group room to move.
That money wasn’t enough and it now has another $9 million to turn the business around.
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