Another blow for Clean Seas
CLEAN SEAS TUNA is fighting for survival after failing to find a desperately needed partner for its troubled yellowtail kingfish business.
It also warned it would have to write down the value of its southern bluefin tuna as it would be suspending its tuna propagation program, which would have a $30 million effect on its first half results.
The company's shares were punished, losing 1.4¢, or 40 per cent, to 2.2¢, having traded at $2 in 2008.
However, Clean Seas says it has tackled issues that were worrying investors, including the health problems that caused fish deaths and a dramatic reduction in stocks.
The South Australian aquaculture company said on Friday it had to continue with a stripped down kingfish business or find a joint venture partner. It would speak to potential partners early in the new year.
The illnesses this year that caused many kingfish to die or not grow to full size were disastrous for the company, leading to a $30.75 million full-year loss, job losses and cost cutting. Better feed - including an essential amino acid - had reduced mortality rates and improved the health of its fish. It is seeking compensation from its feed suppliers.
"Given the company's limited financial resources and need to preserve liquidity, the company anticipates suspending its tuna propagation program for at least the 2013-14 summer, and to direct its limited financial resources to its yellowtail kingfish operations," Clean Seas said.
It said it was largely debt free with a cash balance of $3.93 million, up from $3.64 million at the end of September. Capital-raising options were being considered, including rights issues and debt raising.