New Warrant Issue For Barramundi

18 September 2009

New Warrant Issue For Barramundi

The Directors of Barramundi Limited (“the Company” or ”Barramundi”) are pleased to announce that the Company will undertake a pro rata bonus issue of warrants to shareholders.

At the record date, Barramundi shareholders will be allotted one new warrant for every two shares held. Holders of the new warrants will have the right to subscribe for one ordinary share in Barramundi for each warrant held. The subscription price per share will be 75 cents and the final exercise date for the new warrants will be 27 October 2011.

The record date for the new issue is 23 October 2009. The Investment Statement and Prospectus will be published shortly.

An application will be made for the warrants to be traded on the NZX.

In determining the exercise price, the Board has taken into account Barramundi’s current Net Asset Value and share price, and the impact of the introduction of the long term dividend policy of 2% of Net Asset Value per quarter, announced on 21 August 2009.

The existing 2006 (NZX: BRMWA) warrants will expire on 26 October 2009.
Some warrant holders have made representations to the Board to either extend the final exercise date or allow 2006 warrant holders to participate in a new issue. As explained in Barramundi’s preliminary announcement on 21 August and in the Annual Report now posted to all share and warrant holders, the Board concluded that it would not be equitable to current shareholders to grant such an extension. Legal advice obtained supports the Board’s conclusion.

The terms of the existing 2006 warrants state that “If, before the exercise or lapse of the warrants, the Company makes a pro-rata bonus issue of ordinary shares or other securities to existing shareholders (other than an issue in lieu of dividends or an issue from retained earnings), shares or securities will be reserved for issue to warrant holders on the date that the warrant holder exercises the warrant.” Therefore holders of the 2006 warrants can become eligible to participate in the issue of the new warrants by exercising any 2006 warrants they hold at $1 per share prior to their expiry on 26 October 2009. However, given the current Barramundi share price of approximately 69 cents, holders are strongly encouraged to seek financial advice before considering exercising their 2006 warrants.

ENDS

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