Clean Seas reels in $17.6 million to get more kingfish into kitchens

Kingfish farmer Clean Seas (ASX:CSS) has closed a $17.6 million capital raising, on the heels of this week’s $10 million IPO of abalone rancher Ocean Grown (ASX:OGA).

The $17.6 million will go towards accelerating the company’s growth through increased produce and investment in farming and processing facilities.

Clean Seas shares closed at 6.1c on Wednesday, marginally up from the offer price of 6c.

Since announcing a return to profit in April — following a turbulent period when production fell by 90 per cent — Clean Seas shares have doubled from around 3c.

About $5 million will be put toward a return to farming at Fitzgerald Bay in the upper gulf near Whyalla, South Australia, with an application underway to expand the lease from 2400 to 4200 tonnes.

Clean Seas shut down operations in Whyalla back in 2010.

The Kingfish farmer is also putting the final touches on an advanced processing facility in Adelaide, which includes a rapid-freeze function that snap-freezes fresh fish in 22 minutes as well as Adelaide’s first sub-40-degree freezer.

The rest of the funds will be pay for general working capital and expansion of the farms.

Clean Seas are forecast to grow around 3100 tonnes of their signature Hiramasa Kingfish this financial year.

Fish are hatched at the company’s facility at Arno Bay where they are held until they reach 35 grams, at which point they are helicoptered to farms in the remote arctic waters of the Spencer Gulf (pictured below).