Ocean Guardian is about to become the second ASX-listed anti-shark play after launching an initial public offer to raise $5 million.

Ocean Guardian plans to join Smart Marine Systems (ASX:SM8) — formerly known as Shark Mitigation Systems — on the local bourse in June.

Ocean Guardian is the company behind Shark Shield, an electrical shark deterrent designed to replace shark nets at the world’s beaches.

Sharks have short-range electrical receptors in their snouts used for finding food. Ocean Guardian’s technology is said to create a powerful three-dimensional electrical field which causes unbearable spasms in a shark’s receptors.

The company today launched a prospectus to raise $5 million by issuing 25 million new shares at 20c each to further spread its non-lethal shark deterrent technology.

Ocean Guardian will compete for investor attention with Smart Marine Systems, which is working on convincing Orange County in California to commit to a $10 million rollout of its Clever Buoy system – a near-shore marine monitoring platform that uses sonar to detect sharks and send warnings onshore.

Shark play Smart Marine Systems (ASX:SM8) shares over the past few years. Ocean Guardian will join SM8 on the ASX in June.
Shark play Smart Marine Systems (ASX:SM8) shares over the past few years. Ocean Guardian will join SM8 on the ASX in June.

Smart Marine also sells anti-shark swim gear and an automated “ocean cleaning device that catches floating rubbish, oil, fuel and detergents for ports and marinas”.

While the company has reported significant expressions of interest and a launched a pilot program in September, sales are so far a little slow.

The shares are now languishing at 3.3c — well down on their issue price of 20c in September 2016.

Smart Marine banked $16,000 in cash receipts last quarter — slightly up from $14,000 in the previous quarter. It burned  through $335,000.

Ocean Guardian CEO Lindsay Lyon wants to develop a new range of boat and beach products using existing technology and new technology.

“We see significant future growth in the boat market addressing consumers who have higher disposable incomes, and a more service-driven B to B business model in the beach protection markets with the potential to remove shark nets, the use of drum lines and prevent shark culling; a win for humans, sharks and our environment,” he says.

Ocean Guardian’s offer is expected to close on June 7 with a listing date of June 28.


This article first appeared on Business Insider Australia, Australia’s most popular business news website. Read the original article. Follow Business Insider on Facebook or Twitter.