Seafarms acquires Project Sea Dragon assets for expansion

Seafarms Group Limited (ASX: SFG), via its subsidiary Sea Dragon Shrimp Pty Ltd, has entered a conditional Asset Sale Agreement to acquire all assets and undertakings of Project Sea Dragon Pty Ltd (in liquidation) for A$750,000, exclusive of GST. This purchase includes a A$33,000 deposit and excludes cash held by Project Sea Dragon. The acquisition is contingent on liquidators obtaining specific court orders or directions under the Corporations Act.

This strategic move will allow Sea Dragon Shrimp to develop prawn farming ponds on Legune Station, establish a processing facility in Kununurra (WA), and expand breeding facilities in Exmouth (WA). The company plans to invite equity and strategic investors to fund this expansion, presenting the opportunity on a clean slate, free of prior encumbrances. Completion of the acquisition is set for 10 business days after the condition is satisfied.

The acquisition aims to overcome past challenges related to Project Sea Dragon, which included legal, financial, and structural complexities for SFG. The company recently increased its revolving credit facility with Avatar Finance Pty Ltd to A$16.5m, extending repayment to 15 October 2026, to support working capital and finalise FY25 accounts following the resolution of these complications.