Seafarms Group transaction announcement

Seafarms Group Limited (ASX: $SFG) has announced the sale of certain assets and real property owned by its subsidiary, Seafarm Queensland Pty Ltd, located in Cardwell, Queensland, to Mainstream Aquaculture Property Pty Ltd. Post-transaction, SQPL will retain ownership of Farm 3 in Ingham, the hatchery near Flying Fish Point, and the processing plant on the site of Farm 1 in Cardwell. The transaction is subject to several conditions precedent and is expected to be completed by 30th April 2025.

Executive Commentary

Farm 3, the Processing Plant, and the hatchery will continue to be fully utilised, with a particular focus on export. Farms 1 and 2 have been important in our journey towards Project Sea Dragon (PSD) but have been focused on the production of Banana prawns for the domestic market which is not a part of our strategy going forward. Now is an opportune time to sell Farms 1 and 2, streamline our operations and focus on the key contributing elements of PSD-breeding, farming, processing, and exporting world-class Black Tiger prawns.

Transaction Summary

Seafarms Group Limited (ASX: $SFG) has entered into a binding transaction with Mainstream Aquaculture Property Pty Ltd for the sale and leaseback of certain assets and real property owned by its subsidiary, Seafarm Queensland Pty Ltd, located in Cardwell, Queensland. The company will focus on prawn aquaculture in Ingham and developing Project Sea Dragon, with the proceeds from the transaction assisting in the funding of Project Sea Dragon. The transaction is expected to be completed by 30th April 2025. Seafarms Group aims to streamline its operations and concentrate on breeding, farming, processing, and exporting world-class Black Tiger prawns.