SAN DIEGO, September 14, 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 AMERRA Capital Management, LLC ("AMERRA"), as agent on behalf
of its managed funds and accounts, has agreed to supply Umami with
a loan for working capital in the amount of $8.5 million. The loan will be funded in
three tranches. The first of these was provided on
September 7, 2011 in the amount of
$5,080,000. The second and
third tranches, in the amounts of $1,150,000 and $2,150,000, respectively, will be funded upon
satisfaction of certain funding conditions including Umami's
delivery of additional collateral to AMERRA. In conjunction
with the loan, Umami has issued warrants to purchase 500,000 shares
of the Company's common stock at $1.50 per share.
The proceeds have been used for the repayment of existing
$3.1 million of the Company's debt,
as well as for general working capital for growth and reinforcement
of the Company's infrastructure at its Baja Aqua Farms facility in
Mexico. Umami acquired Baja
Aqua Farms in late 2010, essentially doubling the size of the
Company's operations and biomass. Umami has sought to obtain
medium-term financing to further enhance its biomass growth and
infrastructure. The loan bears interest at a rate equal to
one-year LIBOR plus 11% p.a., and secured with certain assets owned
by Umami. The notes mature beginning in November 2011 with any unpaid amounts fully due
by April 2, 2012.
Additionally, Umami and AMERRA are currently in discussions for
a potential medium term revolving loan to start in 2012 with a
maturity of up to three years. If finalized, these proceeds
would be used to fund the further growth of Umami's operations.
Oli Valur Steindorsson, Umami's Chairman and CEO, said, "The
receipt of this loan, along with the potential for additional
medium-term funding, reduces Umami's reliance on related parties
and could provide Umami with an opportunity for stronger growth in
our Mexico operations over the
next three years."
Craig A. Tashjian, Managing
Director of AMERRA, said, "Umami has an interesting business model
with healthy gross margins, yet the model requires a significant
supply of working capital to maximize the value of its Bluefin Tuna
farming operations. We are excited to be part of the solution
that will assist Umami to manage its long-term biomass growth,
feeding and sales programs in an effort to maximize its revenues
and ultimately its market capitalization. We look at this as a
small first step in our collaboration with Umami, all legal
groundwork, due diligence and background checks for what should
follows has already been done in this first step. We are optimistic
that Baja Aquafarms will fulfill preset conditions needed to go to
the next phase of the collaboration. "
About AMERRA Capital Management,
LLC
AMERRA Capital Management, LLC is an investment manager and
advisory firm based in New York.
AMERRA focuses on directly originating commodity related
transactions and provides a wide range of debt capital products.
AMERRA's target investments are located in the Americas and across
the full spectrum of agricultural commodities.
About Umami Sustainable Seafood
Inc.
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 and, as of November 30, 2010, Baja Aqua Farms, which is an
established Mexico based
aquaculture operation raising Northern Bluefin Tuna in the Pacific.
The Company intends to 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. The Company also intends to continue its
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.
SOURCE Umami Sustainable Seafood Inc.