Why seaweed supplier Ocean Sciences (ASX:OSS) has turned to a $700,000 placement after a thin September quarter

Sonal Goyal

12 November 2026 02:06 PM AEDT

Why seaweed supplier Ocean Sciences (ASX:OSS) has turned to a $700,000 placement after a thin September quarter

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Key Highlights

The company ended the September quarter with $72,000 in cash and an estimated 0.4 quarters of funding.
A $700,000 Placement at $0.011 a share was announced on 4 November, with directors committing $148,000 of the total.
Customer receipts were $960,000 in the quarter, but product and operating costs led to a net operating outflow of $178,000.
The company reported its first sale of Spinosum seaweed, a 25-tonne order from an existing Chinese customer.

Ocean Sciences (ASX:OSS), an Indonesian seaweed trader and research company, has spent recent weeks rebuilding its cash balance. On 4 November 2026 it announced firm commitments for a $700,000 placement at $0.011 a share. On 11 November it lodged the Quotation application and cleansing notice for the shares going to unrelated investors.

The placement followed a September quarter in which the company ended with only $72,000 in cash, according to its Appendix 4C released on 30 October 2026. That is why funding, rather than the company's operating milestones, is the central issue for shareholders right now.

What the company does

Ocean Sciences was formerly BPH Global Ltd. Shareholders approved the new name during the September quarter, along with a 1-for-10 consolidation of capital. It is not related to BPH Energy (ASX:BPH). Through its Subsidiary PT BPH Global Indonesia it buys and sells raw seaweed. It is also working on research projects, including a planned Seaweed Innovation and Application Centre at its coastal site at Takalar, South Sulawesi. The Lease on that site was extended in September, giving tenure to April 2031.

The Quarterly Report says the company began exporting directly to China after receiving Chinese customs approval, with the first shipment delivered on 22 July 2026. On 21 October it reported its first sale of Spinosum seaweed: a 25-tonne order from an existing Chinese customer, then awaiting customs clearance. On 28 October it announced an early-stage research programme into using seaweed-derived alginate to recover gold, silver and possibly rare earths from retired data-centre hardware. This is laboratory research, not a commercial product.

Cash flow and the placement

The 4C shows customer receipts of $960,000 for the quarter. However, operating costs, mostly product and operating expenses of $703,000, led to a net operating outflow of $178,000. Cash fell from $253,000 to $72,000, and the company estimated 0.4 quarters of funding. In its answers to the ASX questions, the company said directors expected to complete a Capital raise in November.

That raise is the placement announced on 4 November. It involves 63,636,364 shares at $0.011, with one free option for each share, exercisable at $0.03 within three years. The Options need Shareholder approval at a general meeting planned for December. Directors and their related parties committed $148,000 of the total, and that portion also needs approval. The remaining 50,181,818 shares are being issued under an approval obtained at the 11 September meeting. The company also plans to offer loyalty options to existing shareholders within about three months. It says the money will go towards expanding operations in Indonesia, the Takalar centre, research and development, and working capital.

Risks and what comes next

The main risk is funding. Even after the placement, the quarter's spending suggests the company may need to raise money again unless trading margins improve. Product and operating payments absorbed most of the quarter's receipts, which suggests margins are thin. There are also risks from Indonesian operations, Chinese customs clearance and customer concentration. The research programmes are early and their outcome is uncertain. Dilution is significant: new shares, attaching options and a planned loyalty offer.

The Annual General Meeting is scheduled for 12:00pm AEDT on 26 November 2026 in Melbourne. A further general meeting in December will vote on the directors' participation and the attaching options. Other things to watch are the December quarter 4C, delivery of the Spinosum order and progress on the Takalar centre.

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