SEAFARMS GROUP LIMITED — Capital/Financing Update 2021

Jun 24, 2021

seafarms

ASX Announcement | 25 June 2021

Seafarms Group Limited (ASX:SFG)
SFG Announcement No. 685

Seafarms successfully completes c.A$92.5 million placement

Investment Highlights

• The placement was well supported, with final demand above A$90 million. The Company accepted oversubscriptions of c.A$2.5 million.
• The capital raising was underpinned by largest shareholder and Seafarms Chairman, Mr Ian Trahar, who subscribed for A$20 million under the placement and agreed to convert all loans approximating A$15.2 million to equity on the same terms as the placement.
• Funds raised will enable the Company to immediately commence construction of Seafarms’ Project Sea Dragon Stage 1a in northern Australia.
• Eligible shareholders can participate on the same terms under a share purchase plan to raise an additional A$15 million (with the right to accept oversubscriptions).

Sustainable aquaculture company Seafarms Group Limited (ASX:SFG) has received binding commitments for c.A$92.5 million under its placement announced on 23 June 2021. Placement shares will be issued at a price of 5.5 cents per share.

Seafarms Executive Chairman, Mr Ian Trahar said “We are delighted to have successfully completed this raising and for the significant support shown for the development of Project Sea Dragon. The raising was well supported by existing shareholders, stakeholders in the project and new investors. We’ll now work with our construction partner Canstruct to commence the initial work packages for this world class aquaculture project.”

The share placement comprises:

• Tranche 1: c.363 million New Shares to be issued on Monday, 5 July 2021 utilising the Company’s 15 per cent placement capacity under ASX Listing Rule 7.1 raising gross proceeds of c.A$20 million
• Tranche 2: c.1,318 million New Shares to be issued subject to shareholder approval raising gross proceeds of c.A$72.5 million.

As announced on 23 June 2021, Tranche 2 of the placement, the Share Purchase Plan, the conversion of existing shareholder debt to new shares and the proposed 3 for 5 unlisted options offer to persons receiving new shares, are each conditional on the approval of Seafarms shareholders. A shareholders meeting is proposed be held on 30 July 2021 (this indicative date may be subject to change).

Bell Potter Securities Limited acted as sole Lead Manager to the placement.

Seafarms shares are expected to resume normal trading on the ASX from market open today.

Seafarms Group Limited (ASX:SFG)
ABN: 50 009 317 846
Level 11, 225 St Georges Terrace
Perth WA 6000 Australia
PO BOX 7312 Cloisters Square
Perth WA 6050 Australia
T +61 8 9216 5200
F +61 8 9216 5199
E info@seafarms.com.au
W seafarms.com.au
Seafarms Group Limited is a corporate authorised representative (“CAR”) (Number 420079)
of CO2 Group Financial Services Pty Ltd (ABN 92 142 542 774 AFSL 388086)

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Further information

Further information on the capital raising, including the associated offer of unlisted options, share purchase plan and an indicative timetable, is provided in the Company's announcement to the ASX on 23 June 2021. The presentation includes important information including key risks and international offer restrictions with respect to the capital raising as well as further details on Project Sea Dragon generally and Stage 1a.

Authorised by the Board of Seafarms Group Limited.

Ends.

For further information, please contact:

Seafarms Group
Mr Harley Whitcombe
Company Secretary
P: (08) 9216 5200

Media Enquiries
True North Strategic Communication
Penny Baxter
P: +61 437 522 532
E: penny@truenorthcomm.com.au

About Seafarms Group

Seafarms Group Limited (ASX:SFG) is a sustainable aquaculture company, producing the premium Crystal Bay® Prawns and developing the Project Sea Dragon prawn aquaculture project in northern Australia.

Seafarms Group uses environmentally sustainable processes and is currently Australia's largest producer of farmed prawns, its Crystal Bay® Prawns and Crystal Bay® Tigers are available year round in fresh and frozen formats. To learn more please visit: www.crystalbayprawns.com.au

Seafarms Group is investing in sustainable aquaculture for export through Project Sea Dragon, a large-scale, vertically integrated, land-based, prawn aquaculture project being developed in northern Australia. The standalone marine prawn production system will be capable of annually producing over 180,000 tonnes of prawns and the high-quality, year-round volumes will target export markets. To learn more please visit: www.seafarms.com.au