- Croatian banks extend additional credit to Kali Tuna of $11.6 million, proceeds to be used as working capital for growing inventories
- Finalizes line of credit of $15 million with its major shareholder
- Finalizes term loan with new investor of $5 million gross proceeds
NEW YORK, Oct. 12 /PRNewswire/ -- The Board of Directors of Umami Sustainable Seafood Inc. ("OTC Bulletin Board: UMAM") (the "Company") today announced credit facilities of $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 $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 $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 email@example.com, or calling +354 664 0000.
SOURCE Umami Sustainable Seafood Inc.