SAN DIEGO, March 9, 2011 /PRNewswire-FirstCall/ -- Umami Sustainable Seafood Inc. (OTCBB:UMAM) ("Umami" or the "Company") today announced that following an acquisition of about 150 metric tons of live bluefin tuna in Croatia from an unrelated third party (hereinafter: "the Vendor") in January 2011, the Company has also concluded an agreement with the Vendor that secures the transfer of the Vendor's current tuna farming concessions in Croatia to Kali Tuna, Umami's Croatian subsidiary, subject to the formal approval of the respective Croatian Authority. These concessions relate to 1,500 metric tons of farming capacity and respective farming licenses.
The additional concessions would increase Kali Tuna's approved farming capacity in Croatia by approximately 45%, from 3,300 metric tons to 4,800 metric tons of capacity. As part of the agreement on the transfer of concessions, Kali Tuna has agreed to purchase certain bluefin farming assets from the same Vendor once Kali Tuna receives final approval for the concession transfer. The concessions and assets are located in close proximity to Split, Croatia, and are less than 100 miles from Kali Tuna's present operations in Kali, Croatia. Total consideration for the concessions, the related farming assets and the 150 metric tons of bluefin tuna will be approximately $4.9 million.
In announcing the acquisition, Oli Steindorsson, Chairman and CEO commented: "The additional concessions which we are acquiring, subject to the local county's formal approval, are an integral part of our plan to increase capacity in Croatia in order to achieve higher levels of sustainable production of bluefin tuna. We purchased live bluefin tuna to effectively secure the acquisition of the farming concessions and assets, facilitating an increase in Kali Tuna's level of sustainable production. The locations of the new concessions are in the protected waters of the Adriatic Sea and the physical distance is close enough to our present Kali facilities for efficient operations and far enough to allow geographic diversity of locations."
Mr. Steindorsson concluded: "Coming on the back of our acquisition of Baja Aquafarms in Mexico, the purchase of the additional concessions in Croatia reflects Umami's commitment to building our sustainable production base for bluefin tuna and to growing into one of the world's leading participants in sustainable aquaculture. The additions to our capacity should allow Umami to achieve over 5,000 metric tons of sustainable production by fiscal year 2013."
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 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. We also intend to continue our research into closed cycle farming technology for Bluefin Tuna which has produced encouraging results.
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.