Ocean Sciences has completed its first direct seaweed shipment from Indonesia to China, but ended September with just A$72,000 in cash and an estimated 0.4 quarters of funding. The company says it expects to raise capital in November as it develops its trading operations and Takalar innovation centre.
- First direct commercial seaweed shipment delivered to a Chinese customer
- Gross sales of approximately A$535,895 recorded for the 15 May to 30 June period
- Cash fell to A$72,000 after A$178,000 of quarterly operating outflows
- Three-year Takalar lease extension secured through April 2031
- November capital raising expected, with size and structure undisclosed
China export milestone meets an immediate funding test
Ocean Sciences Ltd (ASX:OSS) has opened a direct sales route into China, completing its first commercial shipment of raw seaweed from Indonesia in a quarter that also exposed a sharp near-term funding constraint. The shipment was delivered to the customer’s warehouse on 22 July, but the company finished September with only A$72,000 in cash and an estimated 0.4 quarters of available funding.
The export approval came through the General Administration of Customs of the People’s Republic of China under the Indonesia-China Mutual Recognition Arrangement. Ocean Sciences dispatched the shipment from its Makassar export warehouse on 29 June, with the cargo arriving in China on 13 July after checks on moisture and impurity levels. The company says direct exports, alongside its established Indonesian domestic channel, are expected to support broader customer access and longer-term growth opportunities.
Sales growth is visible, but cash conversion remains crucial
Ocean Sciences reported gross sales of IDR 5.331 billion, or approximately A$535,895, for the trading period from 15 May to 30 June 2026. That figure covered a domestic sale to the Indonesian subsidiary of a Chinese carrageenan producer and the first direct China shipment. The filing says the sales were based on fulfilled purchase orders, with payment still pending settlement under standard trading terms.
Aggregate gross sales since the Indonesian trading operation began in May 2025 reached approximately IDR 45.49 billion, or A$3.87 million. The company attributed stable product availability to improved harvesting conditions after the monsoon season and said higher seaweed prices contributed to improved trading margins, despite some moderation in volumes. The result sits against the funding concern identified in the company’s FY2026 funding warning, which reported a material uncertainty over its ability to continue as a going concern.
Operating outflows leave November capital raise in focus
Operating activities consumed A$178,000 during the quarter, while cash declined from A$253,000 to A$72,000 after a A$3,000 foreign exchange effect. The company also reported A$110,000 in payments to related parties for directors’ fees and salaries. Its trade finance facility, provided by Equentia Natural Resources, is fully drawn at A$537,000 equivalent, carries interest of 15% a year and is secured against seaweed stock.
Ocean Sciences says directors are seeking funds from the market and expect to complete a capital raising in November. The filing does not disclose the proposed amount, pricing or structure. It says the company expects to continue operating through existing funds, future revenue and additional funding as required, but the reported cash runway leaves little room for delay or weaker-than-expected customer payments.
Takalar lease extends platform for planned innovation centre
The company has paid IDR225 million, approximately A$17,900, to extend the lease on its 3.4-hectare Takalar coastal site by three years, taking the total tenure through April 2031. The site is intended to host a Seaweed Innovation and Application Centre with cultivation tanks, aquaculture pools, production and processing facilities and a laboratory.
Ocean Sciences finalised the centre’s staged development plan on 1 October, after the reporting period. It covers regulatory approvals, construction and fit-out, commissioning and the start of operations. That project now has a longer lease horizon, but its progress will need to be weighed against the company’s immediate requirement to secure capital and convert sales activity into cash.
Bottom Line?
The China shipment proves the route can be opened; the November raise and incoming customer payments will determine whether Ocean Sciences can fund the next leg.
Questions in the middle?
- How much capital will Ocean Sciences seek in November, and on what terms?
- When will the reported fulfilled purchase orders convert into cash receipts?
- Can direct China exports generate enough volume and margin to support both operations and the Takalar centre?