Australian yellowtail kingfish producer Clean Seas announced plans to double sales of ocean farmed kingfish by 2022 in its Vision 2025 strategic review released in an investor presentation on Sept. 9.
The company analyzed its market opportunities for the liquid nitrogen frozen product SensoryFresh in both the North American and Asian markets as well as pinpointed the opportunities from growing consumption per capita around Europe and Asia.
The company launched SensoryFresh late in 2018. The Spencer Gulf Hiramasa Kingfish is frozen about a day after harvest using rapid freezing technology.
Clean Seas has a share of less than one percent in North America at the moment and 6 percent in Asia.
The company aims to double its sales through expanding in those untapped markets. Clean Seas also expects to reduce production costs through scale, investment in automation and selective breeding.
Through this analysis, the company was able to address its competitive advantage, product and market opportunities and its goals to scale up, optimize working capital and pave the way for more profitable growth.
Clean Seas will issue 8,241,506 shares to Bonafide at a rate of $0.8008 (€0.72) per share to raise the $6.6 million (€5.9 million) equity placement.
Once the company completes a convertible note issue to raise a further $15.3 million (€13.8 million), it expects to be able to fund and implement the 2025 strategic plan.
The convertible notes are proposed to all qualifying shareholders at annual interest rate of 8 percent, an 8 percent conversion discount and three-year term to maturity.
More details on the entitlement offer will be disclosed in Sept. 2019 with the offer closure expected by the end of Oct.
The company saw earnings before interest, tax, demortization and amortization (EBITDA) increase by 23 percent to AUD 5.9 million (€3.6 million/$4 million) in the second quarter of this year compared to last year. This was in part due to continued "excellent" survival rates, health and growth for its kingfish, with biomass at year end increasing 15 percent to 4,136 metric tons.
The Vision 2025 strategic review also provided a summary of the company's milestones over the past twenty years and details of how the company recovered from the feed crisis between 2008 and 2012.