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Trading In Clean Seas Tuna Shares Placed In Halt Australia, March 19, 13

Troubled South Australian tuna farmer Clean Seas Tuna has been placed in a trading halt as it prepares to announce a capital raising to support its plans to ramp up its kingfish operation off Port Lincoln from 500 tons to 1100 tons a year.

The ASX announcement said simply that the company had sought the suspension as it “expects to make an announcement in relation to a proposed capital raising” before trading opens on Thursday.

There is plenty of potential upside in Clean Seas Tuna, given that it was steady in trading at $0.028 before the suspension was granted.

Clean Seas recently posted a $34 million-plus first-half net loss, including $30m in write-downs of its cancelled tuna breeding program.

Clean Seas, which runs an aquaculture business in floating tanks in the Spencer Gulf, has had a series of disasters over the past few years, with some of the fish having been frozen to death, some suffering appalling diarrhea, while others have drowned as they’ve been exposed to big seas.

As recently as late last year, fish were dying at a rate of 1 percent a day, until their diet was augmented by extra stocks of taurine, an essential amino acid widely used in energy drinks such as Red Bull.