- Clean Seas Seafood (CSS) is set to raise $25 million to support its growth strategy and repay convertible note debt
- The money will be raised through a two-tranche institutional placement to institutional investors and directors
- Provided shareholders approve the second tranche, around 43.86 million shares will be issued over both tranches at 57 cents per share
- The issue price marks a 10.9 per cent discount to the last closing price of 64 cents on April 30
- Additionally, Clean Seas has applied for a secondary listing on Euronext Growth Oslo
- If all goes to plan, CSS’ first day of trading on Euronext Growth Oslo is expected to be on or around May 20, 2021
- Company shares are down 8.59 per cent and closed at 58.5 cents
Clean Seas Seafood (CSS) has completed an institutional placement to raise $25 million.
The two-tranche placement garnered a strong demand from new and existing institutional investors and directors.
Under the first tranche, the company will issue 14.93 million shares at 57 cents per share which represents a 10.9 per cent discount to the last closing price of 64 cents per share on April 30.
Subject to shareholder approval, the company will issue 28,929,650 shares under the second tranche.
The directors and management of the company have also committed to subscribe for $140,000 worth of new shares.
Clean Seas Seafood will use the money to seek global growth opportunities as well as repay existing convertible note debt.
“The strong demand from new and existing investors endorses the opportunity ahead of Clean Seas, to rebound strongly as the restaurant market segment recovers from COVID-19, and to continue to develop our new markets and new channel partnerships, including Hofseth in Norway,” CEO Rob Gratton said.
“Our premium Spencer Gulf ocean-reared product and pathway to lower cost production, together with our established distribution channels and supply chain, positions us at the forefront of the global opportunity for our incredible Kingfish species,” Rob added.
In addition, Clean Seas Seafood applied for admission to trade on Euronext Growth Oslo. If this is approved, the company will list its shares in the form of depositary interests that are registered in the Norwegian Central Securities Depositary.
If all goes to plan, CSS’ first day of trading on Euronext Growth Oslo is expected to be on or around May 20, 2021.
Company shares are down 8.59 per cent and closed at 58.5 cents.