Umami secures funding for expansion
The Board of Directors of Umami Sustainable Seafood Inc. 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, reports www.megafishnet.com with reference to Umami Sustainable Seafood.
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 on-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 insure 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 Umami Sustainable Seafood and processing facilities in our key markets and, most importantly, will look to extend our well developed sustainability platform within the industry".