NEW YORK, September 29, 2010 /PRNewswire/ -- Umami
Sustainable Seafood, Inc. (OTC Bulletin Board: 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 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
US$28 million in a combination of
cash and stock (of which US$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 world's 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 rationalization 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 standardized '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 further 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 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.