CSS - Clean Seas Seafood

Re: CSS - Clean Seas Tuna

Nice to see it finally doing something. Any idea the dates and details of the SPP? Any thoughts if it is worthwhile?

Cheers

Re: CSS - Clean Seas Tuna

skyQuake said:

http://www.news.com.au/story/0,27574,26363515-29277,00.html

Can't seem to find the actual link to the Time article itself, can you post the link without the www. if you have it thanks.

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Time hails tuna breeding breakthrough




A BREAKTHROUGH in breeding southern bluefin tuna in captivity has been named the world's second best invention of 2009 by Time magazine.

Clean Seas Tuna, the company that successfully spawned a tankful of southern bluefin tuna in Port Lincoln in March, said it was beaten only by NASA's Ares 1 rocket.

Time described the breeding breakthrough as possibly securing the future of an aquaculture industry for the endangered species.

"Others have gotten Pacific bluefin to spawn and grow in ocean cages, but by coaxing the notoriously fussy southern bluefin to breed in landlocked tanks, Clean Seas may finally have given the future of bluefin aquaculture legs (or at least a tail),'' Time wrote.

Clean Seas founder Hagen Stehr said his team and its collaborators were delighted by the international recognition and remained excited by the commercial potential for their breakthrough.

"Our achievement is a world first and a major stepping stone to presenting the world with a sustainable food resource for the future," Mr Stehr said in a statement today.
add news.com.au to iGoogle

Only last month international authorities agreed to cut the worldwide catch for southern bluefin tuna by 20 per cent to try to protect the species.

Re: CSS - Clean Seas Tuna

truevalue said:

stock is up 21% today at 34.5c on some decent volume, 4.1m shares.

TGE Oracle will be buying back in before long.

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Hi Truevalue, I've been a bit pre-occupied with other investements lately. Yes , CSS has had a good day for holders. As for myself, my position is unchanged despite the recent uptick I still intend to wait to see how things go over summer with SBT breeding/YTK sales etc. I am at the stage where I want to see runs on the board not just swings and misses!
You can rest assured,you will be the first to know if I re-invest. In the meantime good luck , I will continue to monitor CSS and check the thread from time to time.
Cheers
TGE

Re: CSS - Clean Seas Tuna

Looks like CSS have locked up the $12m it was hoping to raise in the SPP by having the amount underwritten by stockbroker Pattersons. This means they will more than likely raise the full $54m and pay back their bank debt of $20m.

Pattersons have recently initiated on the stock with a $1.30 odd price target. I for one would be very happy to see that achieved.

A very action packed couple of months is expected with the AGM and the December spawning. Lets hope it is all hits and no misses!

Re: CSS - Clean Seas Tuna

The way I understood it (please correct me if I am wrong) the SPP wont be decided until the AGM on the 30th. I would guess that there is a very high chance it will be voted in but it's not 100% certain yet.

I think the SPP will close on the 18th of Dec.

Anyway, yes, December looks like it is going to be a very exciting time for CSS. I hope all goes well with the spawning! :brille:

Re: CSS - Clean Seas Tuna

The next two months are some of the biggest since CSS first closed the life cycle of SBT IMO.

1. Tranche 2 approval.
2. SPP approval.
3. Appointment of Ex Santos John Ellice-Flint as chairman.
4. SBT spawning.

I read that point three is subject to Tranche 2 approval.

It will be very interesting to see where the share price ends up after all this... EVEN if all is successful.. There are going to be a whole load of shares issued at 25c for both Tranche 2 and SPP and as much as a successful spawning will be party time I can't help but wonder - will it be enough!?!

Insto's will get their hands on their holdings before any SPP shares get issued and they are currently sitting on 30% profit i'm tipping many will turn these over in the short term. I'm very interested to see the final SPP offering, as exact details of this are all over the shop I feel.

SPP will not be official until it is approved at the AGM.
With reference to the company's official ASX announcement this is the timeline:

Monday, 19 October 2009 - Trading suspension lifted
Tuesday, 27 October 2009 - Settlement of Unconditional Placement
Wednesday, 28 October 2009 - Allotment of Unconditional Placement
Tuesday, 24 November 2009 - Record date – SPP offer
Monday, 30 November 2009 - Annual General Meeting, including vote on Conditional Placement and SPP
Tuesday, 1 December 2009 - SPP offer opens
Tuesday, 8 December 2009 - Settlement of Conditional Placement
Wednesday, 9 December 2009 - Allotment of Conditional Placement
5pm AEDT Friday, 18 December 2009 - SPP offer closes

Note that I also gleamed that.with respect to the SPP.

A) preference will be given to shareholders who were on the books before the shares went into a trading halt..
B) The SPP shares will be issued no longer than 3 months!! after SPP completion.

Anyway chart looks good for once and things are heading in the right direction - fingers crossed for all CSS holders.

Cheers,

Re: CSS - Clean Seas Tuna

Excellent post Ruincity.

Do you think we'll find out if the results of spawning before we have to sign the dotted line for the SPP?

And can someone out there clarify the rules with SPP's in respect to closing dates because the same thing has happened to me with another company (ACL). They announced an SPP yesterday and shares dropped instantly although theirs is only a 2shares for every 11 you have so they didn't drop as much as CSS.
Anyway, I'm wonderring why non shareholders can buy in quickly before closing dates and still get access to these offers. Whereas existing shareholders see their shares more than half in value (in the case of CSS) and still get the same privelidges as the non shareholders that buy in after the announcement.

Re: CSS - Clean Seas Tuna

Hi Steve,

Without going over all the fine details the majority of this is off the top of my head.

"Do you think we'll find out if the results of spawning before we have to sign the dotted line for the SPP?"
This is the no doubt the big question for us lowly retailers.. December has been earmarked as the month for SBT spawning. You will note in my post that 18th of December would be when the SPP is forecast to close.

I note that last year CSS announced to market on the 25th February that their broodstock had spawned. I would have assumed that they would attempt this at the same time however my understanding is that CSS has chosen December as the Ocean water is warmer in SA at this time of year and more suitable for at sea growout. In summary I think it is 50/50 whether we will hear during before or after the SPP close. The SPP has been fully underwritten now so if the SPP is approved at the AGM CSS get the SPP $$ regardless.

I can't help but think that IF there is positive news regarding spawning (which all must remember that this is by no means guaranteed) a timely release before shares are distributed to both SPP and Insto's could be a favourable scenario - but this is merely my opinion. I am sure that they will release the news when it is available....

In response to your enquiries regarding SPP specifics, if approved at the AGM a proper offer will be sent in the mail to all CSS holders. This will entail in full detail the answers to the bulk of your concerns/questions.

As I said in my post earlier and this is from the CSS official market release:
"The record date for the share purchase plan is Tuesday 24 November 2009 and, in the event of excess demand, preference will be given to shareholders who were registered as at Monday 19 October 2009."

So if that is in fact an element of the SPP AND the share price remains high holders before the capital raising carnage will benefit a little (and if things go really well with spawning etc) may do alright indeed.

Who knows!! My fingers are crossed I hold.

Re: CSS - Clean Seas Tuna

Well all went as expected at the AGM. All resolutions past. Capital raising is done and the company can move on.

New Chairman, New CEO, new breeding tanks for SBT, cash on hand, broodstock ready to spawn. I am cautiously optimistic (lets hope we dont have to hear anyone else say that again)

Re the SPP I would not participate unless you understood and believed the story and wanted to hold the stock for a good while. Hoping to make a quick trade could just end in frustration and dare I say, anger. As well all know, when it come to the share price anything could happen. Whatever happens it is guaranteed to be exciting!

Re: CSS - Clean Seas Tuna

Thanks for the update on the AGM, truevalue.

Any insightful questions from the floor? Any further comments on the December spawning plans?

Cheers,

Kenny

Re: CSS - Clean Seas Tuna

I am reading the SPP details now.

Looks like, if there is a scaleback and you have sold your current holding, you will be scaled back. It says:

Preference will be given to those Eligible shareholders who were shareholders immediately prior to the announcement of the SPP to ASX on 19 October 2009, those who have not disposed of any of their shareholding in the period between the announcement of the SPP and the allotment of the New Shares under the SPP and such other criteria as determined to be appropriate by the Directors in their absolute discretion.

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So its probably not a good idea to sell your shares with the intention of buying them back at a guaranteed price of 25c.

Looks like the shares are issued on the 24th and fully underwritten.

Interestingly, there are very specific values that you can put in. With other SPPs recently, it has been $1,000 + $500 increments. With this SPP, its $2,000, $5,000, $7,000, $10,000 or $15,000.

Anyway, looks good to me

Re: CSS - Clean Seas Tuna

Gday guys,

As a newbie could someone explain to me about the Share purchase Plan.

I received an application form today with the .25c issue price, a good offer and nice little earner if the current share price holds or increases by the issue date... so with this letter going out to share holders is it expected that the current SP will slide down to the issue price prior to the close date??

Thanks

Tim

Re: CSS - Clean Seas Tuna

Generally the price wont go down but it might. My personal projection (and I am probably wrong ) is that the price will stay where it is until they announce the result of the SBT breeding that is going on this month.

Success = increase.
Failure = decrease.

If you want to increase your holding, the SPP is the best way to do it right now.

I'm looking forward to it

Re: CSS - Clean Seas Tuna

Airfireman said:

Gday guys,

As a newbie could someone explain to me about the Share purchase Plan.

I received an application form today with the .25c issue price, a good offer and nice little earner if the current share price holds or increases by the issue date... so with this letter going out to share holders is it expected that the current SP will slide down to the issue price prior to the close date??

Thanks

Tim

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Hello All,

Well if today is anything to go by then imo the ssp at .25c is not all that great . the current sp is around the .27c-.28c at time of writing and what's to say that once the cheap share's hit the market dilution of sp will not continue?
the timing of the spawn result's and release of share's will be critical and great if the news if good , if not ?????
p.s. If over sub. and you didn't have share's prior to 19th october you may not get a look in!
All the best to holders of css (I too hold) but imo will watch before jumping in!

Re: CSS - Clean Seas Tuna

Bigukraine said:

Hello All,

Well if today is anything to go by then imo the ssp at .25c is not all that great . the current sp is around the .27c-.28c at time of writing and what's to say that once the cheap share's hit the market dilution of sp will not continue?
the timing of the spawn result's and release of share's will be critical and great if the news if good , if not ?????
p.s. If over sub. and you didn't have share's prior to 19th october you may not get a look in!
All the best to holders of css (I too hold) but imo will watch before jumping in!

Click to expand...

Well,
This is one time i wish i was not right.I know the mkt is flat at the moment but when a company start's to dictate in the maner that css did with their cap rasing this is what happens.
As we all know you can get css at .25c now (if patient) so now all we have to look forward to is the spawn results.
P.S. to all who took up the ssp hope it helped to dilute the price of your current holding and fingers crossed for all of us !

Re: CSS - Clean Seas Tuna

That's funny, there have been some trades at 24.5 cents. So for the individual, it is better to buy on market rather than go through the SPP!

The SPPs I have seen before had a mechanism which stopped that from happening by using a weighted average price. That would have made a lot of sense right now!

I was thinking about getting $5000 worth in the SPP but I can save myself $80 if I buy on market...

It isn't that bad for the company because the SPP is underwritten.

Re: CSS - Clean Seas Tuna

Phew! Lucky I didn't send send off my acceptance for 15,000 shares at 25c.
I can't see the SPP being oversubscribed now!! Last trade was 24.5.

Compared to November, there hasn't been much news at all regarding CSS. Lets hope no news is good news.

I thought the 25c prices was way undervalued and its beyond me that the world seems to think these shares are only worth 25c??? Giving CSS the benefit of the doubt is starting to wear a little thin I have to say!!

But I'm keeping my fingers crossed for bit longer!

Re: CSS - Clean Seas Tuna

steveba5 said:

Phew! Lucky I didn't send send off my acceptance for 15,000 shares at 25c.
I can't see the SPP being oversubscribed now!! Last trade was 24.5.

Compared to November, there hasn't been much news at all regarding CSS. Lets hope no news is good news.

I thought the 25c prices was way undervalued and its beyond me that the world seems to think these shares are only worth 25c??? Giving CSS the benefit of the doubt is starting to wear a little thin I have to say!!

But I'm keeping my fingers crossed for bit longer!

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Well, the last trade was at 25c according to Commsec. Anyway, you may be able to pick them up for 24.5c if you are lucky

Considering that there has been no "bad news", you are right! The price of 25c is undervalued. There is some risk though, it all depends on their SBT spawn results.

Look at it this way: They were trading around 50c or so and they have doubled the number of shares. Effectively, the shares are worth "half as much". There is a problem with the logic though. Because of the cap raising, the book value of the company has increased greatly so they should be worth more than 25c. We shall see what happens! My 24.5c order is still in market and if that fails, I will go in on the SPP.

Let's hope the spawn goes well

Re: CSS - Clean Seas Tuna

It is very difficult to judge what a company like this is worth, since you are investing in probable future profits rather than current profits/assets. Absolute best case scenario would be the company making incredible profits within a few months. Best reasonable scenario would be making extreme profits in 15 months. Very likely is profit in 15 months and brilliant profit in 29 months or so and if nothing bad happens, it is almost certain they will make brilliant profits in the next 3-4 years. Of course, like with any company, if things go badly it might all crash down. With all that being the case it is obviously extremely difficult to work out exactly what they are worth at the moment, but what is certain is that if you invest now and things go well you will make spectacular profits at some point in the next five years, the current price is an absolute bargain. That's a long way off for most people, without precise profit predictions or the possibility of a guaranteed time frame, which is putting people off. If I had more available capital I would be buying more of this one right now while the price is so low. The share price has come down because of the dilution, but more than it 'should' have (as said, they now have a lot more funds). With the share price being so low, the SPP will almost certainly be undersubscribed so the dilution will be less than expected, meaning the current share price represents excellent value in my humble opinion. A brilliant time to jump on board if you don't mind a bit of a risk and are keen to stick it out for more than the short term. The potential is there for incredible profits once production in commercial quantities begins, probably in 1-3 years.

Once this thing gets to the stage where they have the infrastructure built to handle commercial quantities, it will be such a 'media sexy' story; everyone is talking about sustainable food production, the ocean running out of fish, etc etc, and Southern Bluefin Tuna is one of the world's most high profile, highly sought after and top quality fish. It is also now found only in small numbers in the wild. This one has everything required to get massive attention once things kick off IMO, and once it makes a real blip on the radar it will become very hot. Considering the recent SP of around 50c and no bad news, the dilution should only have brought the price down to around 35-40c and even that represented excellent value (in my humble opinion).

Yes, I hold (I'd be hypocritical if I didn't after saying the above!), do your own research, etc.

Re: CSS - Clean Seas Tuna

Ive been watching this one fall for quite some time now.
I also think this stock is well undervalued at the moment which represents a good opportunity to buy. I'm looking forward to seeing how this one plays out ...