SAN DIEGO, July 11, 2011 /PRNewswire/ --
Umami Sustainable 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 it has completed credit facilities and closed loans, which in
the aggregate provide up to $29.1
million additional capital for its seasonal farming
operations and for capital expenses to finance the Company through
its upcoming harvest starting in September
2011.
One of the credit facilities is with a Croatian bank and will
supply up to $15.4 million working
capital to Kali Tuna based on operational needs. This
facility was signed June 21, 2011 and
the Company has already drawn on the facility to fund a portion of
Kali Tuna's operations. Amounts borrowed under the Croatian
facility mature in December 2014.
In July 2011 the Company
borrowed $3.0 million in additional
funds and extended the maturity of $2.0
million in notes from two private investors. These
notes were issued at a discount and on September 30, 2011 the Company will be required
to repay $5.6 million. Finally,
the Company has completed a working capital facility with Atlantis
Group hf (the majority shareholder of the Company) which will
provide working capital loans of up to $15.0
million that are now available to us to fund its operations.
The working capital facility required a settlement of
$4.0 million of previously existing
related party loans. As a result, the Company will be able to
access $10.7 million, net of
expenses, in new capital for its operations as needed. The
loans are due to be repaid no later than March 31, 2012. Each facility and the loans
discussed above require designated biomass as security.
The $29.1 million in available new
capital, combined with the Company's current harvesting plan, is
expected to meet its operational needs through the harvest.
Additionally, the harvest plan, combined with our expected
capital available at the end of the harvest, is expected to supply
Umami with the liquidity necessary to maintain its operations into
the next growing season.
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
November 30, 2010, has acquired
99.98% of Baja Aqua Farms, which is an established Mexico based aquaculture 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 Baja
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 Annual Report on Form 10-K filed
on October 22, 2010, and other
reports filed or to be filed from time-to-time with the Securities
and Exchange Commission.
Contacts:
Umami Sustainable Seafood Inc.
Oli Steindorsson
Chairman and CEO
+1-(619)-544-9177
The Investor Relations Group
+1-(212)-825-3210
Investor Relations:
James Carbonara or Adam Holdsworth
Public Relations:
Laura Colontrelle or Enrique Briz
SOURCE Umami Sustainable Seafood Inc.