NZS Acquires 387-Ton MV Bluefin, Raises $666K, Expands Queensland Operations
New Zealand Coastal Seafoods Limited has expanded its operational footprint and financial base by acquiring the 387-ton fishing vessel MV Bluefin, raising $666,000 through convertible notes, and securing a cornerstone investor. These moves position the company for increased production and strategic growth in the Coral Sea Fishery.
- Acquisition of 387-ton fishing vessel MV Bluefin equipped with advanced technology
- Expansion of operations with new factory facility in Paget, Queensland
- Raised $666,000 through convertible note subscriptions
- Secured cornerstone investor Ilwella Pty Ltd and Flannery Family Office
- Plans to deploy MV Bluefin for fishing in Coral Sea Fishery by mid-2025
Operational Expansion with MV Bluefin Acquisition
New Zealand Coastal Seafoods Limited (ASX: NZS) has marked a significant milestone in its growth trajectory by completing the purchase of the 387-ton fishing vessel MV Bluefin. This 35-metre steel multi-purpose vessel is outfitted with state-of-the-art fishing technology, including Simrad Argus Radar, S2016 Fish Finder sonar, and AP70 Autopilot systems. The acquisition is a strategic move to leverage the Coral Sea Fishery (CSF) Fishing Permits held by the company, aiming to boost annual production to over 500 tons of seafood products valued at more than $6 million.
The Bluefin's deployment is scheduled for May or June 2025, marking the beginning of an expanded operational phase. The company is also actively exploring opportunities to acquire additional vessels to further capitalize on the vast CSF resources.
Facility Expansion and Operational Footprint
Complementing the vessel acquisition, NZS has expanded its operational capacity by establishing a new factory facility at 93-101 Archibald Street, Paget, Queensland. This location is strategically chosen to better serve the coastal fishing town of Mackay and enhance processing capabilities. The new facility is expected to streamline production and support the increased catch volumes anticipated from the Bluefin and potential future vessels.
Financial Strengthening Through Convertible Notes and Cornerstone Investment
Financially, the company has bolstered its position by raising $666,000 through convertible note subscriptions during the quarter. This capital injection reflects strong investor confidence and provides liquidity to support operational expansion. In addition, NZS has secured a cornerstone investor, Ilwella Pty Ltd, supported by the Flannery Family Office, known for diversified investments across hospitality, property development, agriculture, and natural resources. This partnership is expected to underpin the company’s strategic growth and financial stability.
Despite operating cash outflows reported for the quarter, the infusion of convertible note proceeds and the maintenance of unused financing facilities totaling $1 million provide NZS with an estimated 18 quarters of funding runway at current burn rates. This financial buffer is critical as the company transitions into a more capital-intensive operational phase.
Outlook and Market Positioning
NZS’s focus on sustainable seafood sourcing from the Torres and Coral Strait regions, combined with its premium product positioning, aligns well with growing market demand for traceable and responsibly harvested seafood. The company’s operational and financial developments signal a readiness to scale production and enhance market presence both domestically and internationally.
However, the company remains subject to regulatory processes, including the reinstatement of its ASX listing, which is anticipated to progress under normal trading rules. The timing and success of this reinstatement will be a key factor for investor confidence moving forward.
Bottom Line?
NZ Coastal Seafoods is poised for growth with new assets and capital, but market and regulatory hurdles remain to be navigated.
Questions in the middle?
- How will the deployment of MV Bluefin impact NZS’s revenue and profitability in the next two quarters?
- What are the company’s plans for further vessel acquisitions or expansions within the Coral Sea Fishery?
- What is the timeline and likelihood for the reinstatement of NZS’s ASX listing, and how might this affect liquidity?
