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Broke closed containment fish farmer gets more cash

Odd Grydeland
Published Modified

Odd Grydeland

Earlier this week news came from AgriMarine that the company had accepted another loan- this one in the amount of CAD$ 5 million (~€ 3.3 million). Like previous loans from this financier, which is a subsidiary of Dundee Corporation, this loan matures in twelve months and carries an interest rate of 12.68%. According to its web site, “Dundee Corporation is a Canadian independent publicly traded asset management company listed on the Toronto Stock Exchange under the symbol "DC.A". Asset management activities are focused in the areas of the Corporation's core competencies and include resources, real estate and infrastructure, and more recently, the agricultural sector”.

With respect to AgriMarine, the company’s web site says about its business activities among else:

  • Unique advanced technology for fish farming

  • Sustainable technology with highly scalable business model

  • Comparable cost of production to existing industry

  • Proven technology with harvests and sales

  • Little competition in the aquatic closed containment space with first mover advantage

AgriMarine installed a floating solid-wall tank in waters outside Campbell River on Vancouver Island and subsequently stocked it with Chinook salmon. This Middle Bay project collapsed with the brake-up of the tank during a March, 2012 storm and the escape of thousands of fish. According to its financial statements, AgriMarine’s deficit stood at approximately CAD$ 28.8 million (~€ 19 million) at the end of December, 2012.

The dealings between AgriMarine and the Dundee Agricultural Corporation (Dundee) apparently began in February the next year, when an AgriMarine posting announced a loan from Dundee in the amount of CAD$ 1.75 million (~€ 1.16 million in today’s currency). Proceeds of the loan were to be used to pay for the outstanding accounts payable, wages and for working capital purposes. After this initial deal, there has been further activities within AgriMarine that have had involvement with Dundee- some of which are described on the company’s web site;

  • April 22, 2013: Dundee lends to AgriMarine CAD$ 5 million (~€ 3.3 million)
  • June 14, 2013: Dundee agrees to add another CAD$ 1.7 million (~€ 1.13 million) to the February, 2013 loan, which by then had accrued some CAD$ 79,000 (~€ 52,300) in interest charges.
  • September 23, 2013: Dundee lends AgriMarine another CAD$ 10 million (~€ 6.6 million)

On November 28, 2013 AgriMarine announces that it plans to purchase West Coast Fishculture (WCFC)- a lake-based net pen rainbow trout farm in British Columbia, and that it has “permanently shut down its research and demonstration site at Middle Bay, Campbell River”.

On December 9, 2013 AgriMarine announces that it has completed this purchase of WCFC for CAD$ 5.2 million (~€ 3.45 million). “We are enthusiastic about the acquisition of WCFC and the strategic opportunity it represents as we focus on becoming a global producer of sustainable fin fish”, commented Mr. Sean Wilton, President and CEO of AgriMarine. “Our plan is to install our proprietary AgriMarine System™ rearing tanks at WCFC, where we will focus on accelerated crop turnover and demonstrate the performance benefits of our closed containment technology.”  Mr. Wilton added, “We believe that WCFC’s established steelhead operation, fish inventory, hatchery, and skilled manpower, combined with AgriMarine’s technology, will provide a strong head start to scale up fish production in British Columbia.” 

This week’s news about another CAD$ 5 million loan from Dundee to AgriMarine comes after the latest issuance of financial statements provided by AgriMarine that show a deficit of CAD$ 33.8 million (~€22.4 million).

Broke closed containment fish farmer gets more cash

 

Canada: The Canadian company AgriMarine Holdings Inc. (or its subsidiary AgriMarine Industries Inc.) announces a new loan from Dundee Agricultural Corporation

 

Odd Grydeland

 

Earlier this week news came from AgriMarine that the company had accepted another loan- this one in the amount of CAD$ 5 million (~€ 3.3 million). Like previous loans from this financier, which is a subsidiary of Dundee Corporation, this loan matures in twelve months and carries an interest rate of 12.68%. According to its web site, “Dundee Corporation is a Canadian independent publicly traded asset management company listed on the Toronto Stock Exchange under the symbol "DC.A". Asset management activities are focused in the areas of the Corporation's core competencies and include resources, real estate and infrastructure, and more recently, the agricultural sector”.

 

With respect to AgriMarine, the company’s web site says about its business activities among else:

  • Unique advanced technology for fish farming

  • Sustainable technology with highly scalable business model

  • Comparable cost of production to existing industry

  • Proven technology with harvests and sales

  • Little competition in the aquatic closed containment space with first mover advantage

 

 AgriMarine installed a floating solid-wall tank in waters outside Campbell River on Vancouver Island and subsequently stocked it with Chinook salmon. This Middle Bay project collapsed with the brake-up of the tank during a March, 2012 storm and the escape of thousands of fish. According to its financial statements, AgriMarine’s deficit stood at approximately CAD$ 28.8 million (~€ 19 million) at the end of December, 2012.

 

The dealings between AgriMarine and the Dundee Agricultural Corporation (Dundee) apparently began in February the next year, when an AgriMarine posting announced a loan from Dundee in the amount of CAD$ 1.75 million (~€ 1.16 million in today’s currency). Proceeds of the loan were to be used to pay for the outstanding accounts payable, wages and for working capital purposes. After this initial deal, there has been further activities within AgriMarine that have had involvement with Dundee- some of which are described on the company’s web site;

  • April 22, 2013: Dundee lends to AgriMarine CAD$ 5 million (~€ 3.3 million)

  • June 14, 2013: Dundee agrees to add another CAD$ 1.7 million (~€ 1.13 million) to the February, 2013 loan, which by then had accrued some CAD$ 79,000 (~€ 52,300) in interest charges.

  • September 23, 2013: Dundee lends AgriMarine another CAD$ 10 million (~€ 6.6 million)

 

On November 28, 2013 AgriMarine announces that it plans to purchase West Coast Fishculture (WCFC)- a lake-based net pen rainbow trout farm in British Columbia, and that it has “permanently shut down its research and demonstration site at Middle Bay, Campbell River”.

On December 9, 2013 AgriMarine announces that it has completed this purchase of WCFC for CAD$ 5.2 million (~€ 3.45 million). “We are enthusiastic about the acquisition of WCFC and the strategic opportunity it represents as we focus on becoming a global producer of sustainable fin fish”, commented Mr. Sean Wilton, President and CEO of AgriMarine. “Our plan is to install our proprietary AgriMarine System™ rearing tanks at WCFC, where we will focus on accelerated crop turnover and demonstrate the performance benefits of our closed containment technology.”  Mr. Wilton added, “We believe that WCFC’s established steelhead operation, fish inventory, hatchery, and skilled manpower, combined with AgriMarine’s technology, will provide a strong head start to scale up fish production in British Columbia.”

 

This week’s news about another CAD$ 5 million loan from Dundee to AgriMarine comes after the latest issuance of financial statements provided by AgriMarine that show a deficit of CAD$ 33.8 million (~€22.4 million).

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