A new issue of $A25m on top of the current market capitalisation...

A new issue of $A25m on top of the current market capitalisation of $92.63m will dilute existing holders, yes. It appears to be a low value ill-defined off-take agreement or a private placement but the value and issue of new shares indicates more a private placement. However the commentary, if accurate, makes a confusing reference to the japanese company will use this equity stake to market the PSD tiger prawn product and that would be a separate agreement along the lines of a reciprocity deal rather than an off-take agreement. In other words the test will be whether the equity is directly tied to a contractual obligation of product marketing.

Let's see what the market and the ASX have to say about this in coming days but that is my view on it at this point in the absence of any further detail or greater clarity.