Source: PR NewsWire
Umami Sustainable Seafood Inc., 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 USD 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 USD 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 USD 3.0 million in additional funds and extended the maturity of USD 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 USD 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 USD 15.0 million that are now available to us to fund its operations. The working capital facility required a settlement of USD 4.0 million of previously existing related party loans. As a result, the Company will be able to access USD 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 USD 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.