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First Component of a Potential Medium-Term Financing Deal
SAN DIEGO – September 14, 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 AMERRA Capital Management, LLC (“AMERRA”), as agent on behalf
of its managed funds and accounts, has agreed to supply Umami with a loan for working
capital in the amount of $8.5 million. The loan will be funded in three tranches.
The first of these was provided on September 7, 2011 in the amount of $5,080,000. The second
and third tranches, in the amounts of $1,150,000 and $2,150,000, respectively, will be
funded upon satisfaction of certain funding conditions including Umami’s delivery of
additional collateral to AMERRA. In conjunction with the loan, Umami has issued
warrants to purchase 500,000 shares of the Company’s common stock at $1.50 per share.
The proceeds have been used for the repayment of existing $3.1 million of the
Company’s debt, as well as for general working capital for growth and reinforcement of
the Company’s infrastructure at its Baja Aqua Farms facility in Mexico.
Umami acquired Baja Aqua Farms in late 2010, essentially doubling the size of the Company’s operations
and biomass. Umami has sought to obtain medium-term financing to further enhance its
biomass growth and infrastructure. The loan bears interest at a rate equal to one-year
LIBOR plus 11% p.a., and secured with certain assets owned by Umami.
The notes mature beginning in November 2011 with any unpaid amounts fully due by April 2, 2012.
Additionally, Umami and AMERRA are currently in discussions for a potential medium
term revolving loan to start in 2012 with a maturity of up to three years. If finalized,
these proceeds would be used to fund the further growth of Umami’s operations.
Oli Valur Steindorsson, Umami’s Chairman and CEO, said, “The receipt of this loan,
along with the potential for additional medium-term funding, reduces Umami’s reliance
on related parties and could provide Umami with an opportunity for stronger growth in
our Mexico operations over the next three years.”
Craig A. Tashjian, Managing Director of AMERRA, said, “Umami has an interesting
business model with healthy gross margins, yet the model requires a significant supply of
working capital to maximize the value of its Bluefin Tuna farming operations. We are
excited to be part of the solution that will assist Umami to manage its long-term biomass
growth, feeding and sales programs in an effort to maximize its revenues and ultimately
its market capitalization. We look at this as a small first step in our collaboration with
Umami, all legal groundwork, due diligence and background checks for what should
follows has already been done in this first step. We are optimistic that Baja Aquafarms
will fulfill preset conditions needed to go to the next phase of the collaboration. ”
About AMERRA Capital Management, LLC
AMERRA Capital Management, LLC is an investment manager and advisory firm based
in New York. AMERRA focuses on directly originating commodity related transactions
and provides a wide range of debt capital products. AMERRA’s target investments are
located in the Americas and across the full spectrum of agricultural commodities.
About Umami Sustainable Seafood Inc.
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. The Company
also intends to continue its 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:
Erika Moran or Adam Holdsworth
Public Relations:
Laura Colontrelle or Enrique Briz