Yumbah Aquaculture ups stake and nabs two board seats at East 33
Food & Agriculture
Food & Agriculture
Australia’s largest vertically integrated Sydney Rock Oyster producer, processor and supplier, East 33 Limited gets a new major shareholder
Leading Australian Sydney Rock Oyster producer, processor and supplier East 33 (ASX:E33) has ruled off a $7.97 million capital raise backed by Pro Medicus founder (ASX:PME) Anthony Hall via Yumbah Aquaculture.
Yumbah is now East 33’s largest shareholder and has appointed two of its senior executives to the East 33 board; Ben Cameron of well-known family-owned oyster producer Cameron of Tasmania and Ernst and Young veteran Gary Higgins.
Originally dealing in the business of Abalone in South Australia, Yumbah has been on a buying spree over the last 12 months as it looks to cement its position as a dominant force in the Australian seafood sector.
The company snapped up pacific oyster business Cameron of Tasmania in a multimillion-dollar deal just months after acquiring Port Phillip Bay mussel producer Bay Sea Farms, before going on to pick up an 8% share in East 33 in May this year.
That stake has now been increased to 35%, following the company’s entitlement offer which saw a total of $7.97 million raised.
East 33 has remained robust despite a challenging season marred by flooding and the impact of QX disease, which has destroyed 30% of Sydney Rock Oyster production, industry wide.
The resulting shortages have seen Sydney Rock Oyster prices skyrocket with East 33 reporting 33% increase in prices for its product.
In its latest quarterly result, the company reported a 270% increase in harvest volume year on year (YoY) with sales up 50% YoY.
“Our operating revenue increased by 21% from the previous quarter as the company’s last two years of investment in infrastructure and inventory came to fruition, Managing Director of East 33, James Garton, said.
“With more than 35 million saleable Oysters in inventory and a commanding vertically integrated business model, East 33 is positioned to continue such growth for years to come”.
This article was developed in collaboration with East 33, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.