Poor quarter for AgriMarine
While AgriMarine’s main claim to fame is its “proprietary, floating solid-wall tank technology for aquaculture”, the results of using this technology have not been stellar. Its first tank installed in Canada broke up in a storm, resulting in the loss of money and fish, and AgriMarine’s subsidiary in China lost CAD$ 211,000 on revenues of CAD$ 50,000 during the last quarter, which ended on June 30, 2014. Some 12,000 kg of product was moved to “frozen fish inventory” during the quarter.
Here are some other interesting numbers (in Canadian dollars) from the company's June statements:
- The current portions of loans to the Dundee Agriculture Corporation, which is wholly owned by the Toronto Stock Exchange-listed Dundee Corporation (DAC): $25.8 million
- AgriMarine’s deficit: $38.5 million
- Cash - beginning of last quarter: $3.8 million
- Cash - end of last quarter: $854,000 (apparently some $2.4 million was used to purchase property and equipment)
- Average annual salary - AgriMarine’s CEO & CFO- $156,000
AgriMarine’s last financial statements also contain the following details about its economic position as of June 30, 2014;
“….the Company was in default on its secured loan, bridge loan and convertible notes, with $20,779,000 in principal owing to the Company’s controlling shareholder, DAC. These conditions indicate existence of a material uncertainty that casts significant doubt about the ability of the Company to meet its obligations as they become due and, accordingly, its ability to continue as a going concern”.
Despite these grim details, AgriMarine issued the following press release today:
AgriMarine Holdings is pleased to announce the launch of AgriMarine Technologies Inc. (“ATI”), a wholly-owned subsidiary dedicated to the development of sustainable, innovative technology systems and solutions for commercial aquaculture applications around the world. AgriMarine has been a leading innovator of aquaculture systems for over two decades. The Company gained extensive knowledge in the design and construction of recirculation hatcheries, large-scale rearing tanks, management of water flows, fish culture and husbandry, and in the development of patented rearing technologies. AgriMarine is now harnessing this expertise in order to provide a full range of design-build consulting services to the aquaculture industry.
From land-based, recirculating aquaculture systems (RAS), and floating semi-closed containment systems (AgriMarine System™ tanks), to water treatment equipment and the latest aquaponics designs, ATI boasts an extensive suite of cutting-edge, clean technologies as well as components for fish farming. ATI’s systems create optimal fish rearing environments with economic and environmental benefits and are designed for a multitude of applications and aquaculture species. “Our team of professionals understand the challenges and opportunities inherent in aquaculture”, said Robert Walker, President of ATI. He added, “ATI has an immediate market edge in a rapidly growing aquaculture sector”.
Sean Wilton, President and CEO of AgriMarine Holdings, added “We have designed, built and operated the most advanced and technologically sophisticated recirculation hatcheries in the world. We pioneered the AgriMarine System™ tank technology which we are now utilizing in our own farms. Creating a dedicated company to capitalize on these technologies was a natural progression of our business model. We are now ready to work with local and international clients who want to improve the profitability and sustainability of their fish farms through the application of innovative technology systems.”
Former AgriMarine boss Richard Buchanan is now said to be heading up the aquaculture investment activities of the Vancouver-based Aquilini Investment Group’s foray into aquaculture through the purchase of a land-based coho farm in the Fraser Valley and more recently, the assets of the now bankrupt Sablefish Canada Ltd.
