Umami Sustainable Seafood Inc. Announces Progress in Obtaining Financing for the Fishing and Growing Seasons
Seafood Inc. (OTCBB:UMAM) (“Umami” or the “Company”), a holding company of
fish farming operations supplying sashimi-grade Northern Bluefin Tuna to the
global market, announces that the Company has been actively negotiating with
multiple funding sources to secure short term financing for its seasonal
Upon the closing of approximately
the Company is expected to have sufficient funds to complete its planned
fishing for the season. The Company also expects that this
provide the capital necessary for budgeted fish farming operations through
the next harvest season, which would commence this coming October.
The Company harvests and sells its Bluefin Tuna product primarily in the
months of October to March, incurring most of its costs, primarily the
feeding of our fish, from April to September. In this non-harvest period, the
Company is relying on external debt financing to fund its farming operations,
mostly from local banks in
are located, and related parties.
The Company has very recently closed new funding of about
banks. The Company also hopes to close a working capital line of
which has been negotiated with a third party lender soon, subject to adequate
amounts of biomass (live fish being farmed) being available to serve as
collateral. Further, the Company hopes to close a working capital facility of
cash needs with short term funding from various sources, as it has done on a
regular basis in the past, in order that ongoing farming operations are
funded as required.
To the extent that some or all remaining
does not close, the Company may raise cash by making alternate borrowing
arrangements or by harvesting and selling or pre-selling some of its biomass
inventory, which currently stands at about 3,600 tons, valued at over
Additionally, the Company is continuously looking for optimal sources for
long term equity and/or debt for expansion capital, with emphasis on growing
its infrastructure and obtaining new licenses that will enhance its
In announcing these developments, Oli Steindorsson, Chairman and CEO of
Umami, commented: “In spite of the Japan Tsunami on
tragedy which devastated the North East portion of our primary market, we
have made considerable progress in securing funding at a considerably lower
interest cost this year as compared to last year.
“The Japanese market for Bluefin Tuna seems to be at least as receptive
in 2011 as it was in 2010. We have received verbal requests from clients this
year for approximately 4,500 metric tons of Bluefin. Further, the recent very
strong fishing results in Croatian waters have given us empirical evidence
that the quota and monitoring procedures implemented by ICCAT to ensure the
sustainability of the Bluefin in the Mediterranean are working very well.”
About Umami Sustainable Seafood Inc.
The Company wholly 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 and, as of
99.98% of Baja Aqua Farms, which is an established
operation raising Northern Bluefin Tuna in the Pacific. The Company has
become the leader in aquaculture for northern bluefin tuna 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. We also intend to continue our research into closed cycle
farming technology for Bluefin tuna which has produced encouraging results.
For more information, please visit http://www.umamiseafood.com.
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 businesses of Kali Tuna and
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 Annual Report on Form 10-K filed on
with the Securities and Exchange Commission.
SOURCE Umami Sustainable Seafood Inc.