Attached files
| file | filename |
|---|---|
| 8-K - Umami Sustainable Seafood Inc. | v198019_8k.htm |
| EX-10.7 - Umami Sustainable Seafood Inc. | v198019_ex10-7.htm |
| EX-10.8 - Umami Sustainable Seafood Inc. | v198019_ex10-8.htm |
Exhibit
99.1
UMAMI
SUSTAINABLE SEAFOOD INC. ANNOUNCES INTENT TO MOVE FORWARD ON ACQUISITION OF BAJA
AQUAFARMS
Umami
Sustainable Seafood, Inc. (OTCBB"UMAM") (the “Company") today announced
that its Board of Directors has decided to move forward and complete the
acquisition of Baja Aquafarms ("Baja"), a leading producer of bluefin tuna based
in Mexico.
As
reported previously, in July 2010 the Company acquired a 33% interest in Baja.
The Board of Directors has now decided to exercise its option to acquire the
balance of the shares in Baja, with closing scheduled to take place by November
30 2010. Under the terms of the acquisition agreement, as amended,
the total purchase price for 100% of Baja is $28 million in a combination of
cash and stock (of which $8 million has been paid to date), together with
various working capital advances to be made to Baja by the Company through the
application of proceeds of inventory sales during the balance of the
year.
In
announcing the revised agreements, Oli Steindorsson, Chairman of the Company
stated; "I am very pleased that our Board and that of Baja, have decided to
move forward for Umami to complete the acquisition of 100% of Baja
which is the leading bluefin tuna operation in Mexico. Completion of
this acquisition would represent a key step in our strategy of becoming the
worlds leading producer of bluefin tuna. Coming off the back of
very successful fishing seasons in both our Croatian and Mexican
operations, we are in a situation of being well stocked with inventory at a
time of sharply rising prices due to a combination of factors, including
increasing global demand for quality sushi and sashimi."
Mr
Steindorsson continued: "Against the background of our recent expansion and
continuing improvements in our existing operations, we believe that
our financial performance will be significantly enhanced by our combination
with Baja, particularly given the synergy to be derived from
rationalisation and consolidation of our marketing and distribution.
Baja is a company with whom we are very familiar and their management team
has done a superb job in developing a world class bluefin farming
operation. Following the acquisition of Baja and on a combined basis, we believe
that Umami will account for over 20% of the global market for farmed bluefin
tuna, which will elevate the operating scope of our well
refined, sustainable production platform and should enable us to have
a meaningful impact on efforts to normalize the global supply of bluefin
which has historically suffered from overfishing. We are
also continually looking at ways to improve our efficiency, particularly
with respect to rationalization of our sales and marketing and creation of a
standardised "UMAMI" marketing and distribution platform for our products sold
both in Japan and other key markets globally."
Mr
Steindorsson concluded: "We continue to develop and refine our farming and
feeding technologies to futher reduce our cost per kilo of farmed fish, already
one of the most efficient in the industry, and will continue to focus on
increasing the profitability of our operations. Most importantly, we
will enhance our efforts in research and development of captive breeding
(closed cycle) technology so that, ultimately, we can ensure that supplies of
this most valuable resource are maintained and the bluefin retains its
position at the top of the marine food chain."
For
additional details regarding the terms of this transaction, please review the
Company’s Current Report on Form 8-K to be filed with the Securities and
Exchange Commission.
About
the Company
The
Company owns and operates Kali Tuna which is an established Croatian-based
aquaculture operation raising Northern Bluefin Tuna in the Croatian part of the
Adriatic Sea. The Company intends to become the leader in the Northern Bluefin
Tuna industry by acquisition and internal growth. The growth of the Company will
be founded on the sustainable management of resources and economically sound
practices, seeking opportunities resulting from market consolidation and
scientific progress in the industry.
Notice
Regarding Forward Looking Statements
This
press release contains projections and forward-looking statements, as that term
is defined in Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Statements in this press
release, which are not purely historical, are forward-looking statements and can
include, without limitation, statements based on current expectations involving
a number of risks and uncertainties and which are not guarantees of future
performance of the Company. There are numerous risks and uncertainties that
could cause actual results and the Company's plans and objectives to differ
materially from those expressed in the forward-looking information, including
(i) adverse market conditions; (ii) any adverse occurrence with respect to the
farmed seafood industry generally or the business of Kali Tuna specifically; and
(iii) changes in the regulatory environment. Actual results and future events
could differ materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are based on
estimates and opinions of management on the dates they are made and are
expressly qualified in their entirety by this notice. Although the Company
believes that the beliefs, plans, expectations and intentions contained in this
press release are reasonable, there can be no assurance those beliefs, plans,
expectations or intentions will prove to be accurate. Investors should consult
all of the information set forth herein and should also refer to the risk
factors set forth in the Company's Current Report on Form 8-K filed on July 7,
2010, and other reports filed or to be filed from time-to-time with the
Securities and Exchange Commission.