NEW YORK, October 12, 2010 /PRNewswire/ -- The Board of
Directors of Umami Sustainable Seafood Inc. ("OTC Bulletin Board:
UMAM") (the "Company") today announced credit facilities of
US$11.6 million from Croatian banks
to be used to fund the growth of inventory in Umami's Croatian
operation, Kali Tuna. Additionally, Umami has finalized its
previously announced US$15 million
line of credit, which was extended to Umami by its shareholder,
Atlantis Group, on June 30, 2010. In
addition, the Company closed on a US$5
million loan from a third party lender. The line of credit
from Atlantis Group and the loan from the third party have been and
will be utilized by the Company to, among other things, partially
fund the Baja Aqua Farms acquisition.
In announcing the additional facilities, Oli Steindorsson,
Chairman of the Company stated: "I am pleased to see the confidence
being shown in us through the availability of a variety of
additional credit facilities which are being provided on attractive
terms. We are in the process of accumulating funds that can be
utilized both to finance the growing of inventory, following record
catches this year, and completion of our Baja acquisition, which will result in Umami
becoming the world's leading producer of bluefin tuna.
We have previously reported the completion of very successful
fishing seasons in our Croatian operations and in Baja Aqua Farms,
in which the Company owns a 33% interest and in which the Company
has exercised an option to acquire the remaining 67%. While this
places us in a very strong position of high levels of livestock at
a time of rising prices, we also needed to secure an adequate
supply of working capital so that we can continue lengthening our
farming cycle. Because larger fish result in higher prices, this
helps ensure premium prices at harvest."
Mr. Steindorsson continued: "Against the background of our
continuing improvements in our existing operations and planned
acquisition, our financial performance is particularly satisfying,
with consolidated operations, assuming the acquisition is
completed, expected to generate significantly higher revenue and
earnings our fiscal year ending June 30,
2011." Mr. Steindorsson concluded: "We continue to look for
opportunities to enhance high quality farming and processing
facilities in our key markets and, most importantly, will look to
extend our well developed sustainability platform within the
industry."
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. These forward-looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions,
involving known and unknown risks and uncertainties.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements, based upon the current
beliefs and expectations of Umami's management, are subject to
risks and uncertainties, which could cause actual results to differ
from the forward-looking statements. The following factors, among
others, could cause actual results to meaningfully differ from
those set forth in the forward-looking statements:
- Continued compliance with government regulations;
- Changing legislation or regulatory environments, including with
respect to changes in quotas for Bluefin Tuna;
- Requirements or changes affecting the businesses in which Umami
is engaged;
- Industry trends, including factors affecting supply and demand;
- Labor and personnel relations;
- Credit risks affecting Umami's revenue and profitability;
- Umami's ability to effectively manage its growth, including
implementing effective controls and procedures and attracting and
retaining key management and personnel;
- Changing interpretations of generally accepted accounting
principles;
- General economic conditions; and
- Other relevant risks detailed in Umami's filings with the
Securities and Exchange Commission available on the SEC's website
(http://www.sec.gov).
The information set forth herein should be read in light of such
risks. Umami does not assume any obligation to update the
information contained in this press release.
If you would like more information, or to schedule an interview
with Mr. Steindorsson, please contact Karl
Petur Jonsson, by emailing karl@atlantis-ltd.com, or calling
+354-664-0000.