US investors led by speargun entrepreneur buy IP of collapsed shark deterrent tech Ocean Guardian

The Shark Shield technology emits electrical signals that are picked up by the sensitive "ampullae of Lorenzini" receptors in sharks, causing muscular spasms that prompt them to swim away in most cases. 

Initially developed in South Africa, at the turn of the Millennium the technology was licensed to a South Australian company called SeaChange Technology which further developed its own iterations and patents, and eventually became known as Ocean Guardian - a company that went into administration in mid-2024 and was resolved to be wound up on 30 August. 

Prior to administration, the group recorded a net loss of $1.2 million in FY23 as pre-IPO funding had been allocated to prepare for a listing and build its Shark Barrier sales pipeline. However, more capital was required to purchase inventory to meet demand for its dive, boat and fish products.

In August, The Australian reported the company owed $602,179 to unsecured creditors. Administrators have declined to provide a copy of the creditor's report to confirm this figure. Documents lodged with the corporate regulator show $13.9 million in total was paid for shares in Ocean Guardian.

Related story: Ocean Guardian administrator in talks with "several parties" to secure its future

Administrator Olga Litosh of Quartz Advisory tells Business News Australia the sale process for Ocean Guardian involved 32 interested parties globally including in the USA, Europe, South Africa and Australia.

"I met with various interested parties and held discussions about recapitalising Ocean Guardian through a DOCA (Deed of Company Arrangement) or the acquisition of assets outright," Litosh says.

"I received an overwhelming response from the market including interest from various stakeholders and government bodies in support of the restructure.

"Ocean Guardian, as a business, had a significant environmental purpose. All stakeholders, including secured parties and creditors, have supported the efforts made during the administration to secure the future of the Ocean Guardian brand and Shark Shield technology."

Despite these discussions and interest, no formal DOCA proposal was put forward before a resumed second concurrent meeting of creditors, "and there was no viable alternative for creditors other than to place the companies in liquidation".

However, behind the scenes Litosh was able to secure a small victory in the process, with assistance from Stefano Calabretta of Emerson Lewis Lawyers, in securing a sale of the IP. Litosh describes Martin as a "stalwart in the Florida spear fishing and diving community and creator of Killshot Spearguns".

She says the new owners are ordinary unsecured creditors in Shark Shield Pty Ltd and long-standing users of Shark Shield products.

"As a user and vendor of Shark Shield products, we were so impressed by the product’s effectiveness that it was an impossible opportunity to pass up," says Martin.

"We are appreciative of Ms Litosh’s professionalism and diligence in making this happen. She and her team are an absolute pleasure to work with."

Litosh says the new owners have committed to manufacturing the dive and surf line of product lines, which should be shipping again within the next couple of months.  

"The boat and fishing product lines are planned to be shipped in the summer of 2025, and development and deployment of the large-scale shark barrier will continue as well," she says.

"Mr Martin and his team remain committed to the company’s tradition of research and development of shark deterrence technologies and will continue to offer what he says is 'the only effective shark deterrence product on the market'."

The investors were advised by Thomas Russel of Piper Alderman in Australia.