New Zealand Coastal Seafoods fish maw

New Zealand Coastal Seafoods' fish maw

Seafood processor New Zealand Coastal Seafoods plans to list shares in Australia as part of a deal with media firm XTV Networks to acquire the company.

Founded in 2016, New Zealand Coastal Seafoods (NZCS) is seeking to raise funds through a public share sale to expand the business, which currently supplies markets in Australia, China and South-east Asia, as well as its home country. The company processes, distributes and exports premium seafood products, either directly or through distributors, to restaurants, seafood traders, supermarkets and other retailers from its facility in Christchurch. 

NZCS said it has entered a "share sale deed" with XTV, which is listed on the Australian Securities Exchange, to acquire 100% of the New Zealand firm subject to certain conditions.

While XTV is primarily focused on the development and distribution of cloud television technologies, "for the past several months, the company has been seeking to identify and evaluate new corporate opportunities which have the potential to deliver strong growth and increase shareholder value", according to the prospectus.

Once the deal is completed, XTV will change its name to New Zealand Coastal Seafoods Ltd. and proceed to offer as much as AUD6m (US$4.1m) in shares priced at AUD0.025 each. The plan entails AUD5m in shares with an additional AUD1m allocation in the event the issue is oversubscribed.

"Upon completion of the acquisition and capital raising, NZCS will be well-positioned and well-funded to execute on its growth strategy, which is focused around the rapid expansion of its production capacity, product range and distribution channels into new and existing markets," the company said in a statement.

With fresh funds in hand, NZCS said it plans to move to a larger processing facility with new equipment to expand its capabilities, which may also include a shift into areas such as long shelf-life pre-packaged products. They may include ready-to-eat ling maw soup and mussel soup.