SAN DIEGO – JULY 8, 2011 -- 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 it has completed credit facilities and closed loans, which in the
aggregate provide up to $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 $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 $3.0 million in additional
funds and extended the maturity of $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 $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 $15.0 million that are now available
to us to fund its operations. The working capital facility required a settlement of $4.0
million of previously existing related party loans. As a result, the Company will be
able to access $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 $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.
About Umami Sustainable Seafood Inc.
The Company wholly 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, has acquired 99.98% of Baja Aqua
Farms, which is an established Mexico based aquaculture operation raising Northern
Bluefin Tuna in the Pacific. The Company has 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. 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.
Contacts:
Umami Sustainable Seafood Inc.
Oli Steindorsson
Chairman and CEO
(619) 544-9177
The Investor Relations Group
(212) 825-3210
Investor Relations:
James Carbonara or Adam Holdsworth
Public Relations:
Laura Colontrelle or Enrique Briz