The company said the requirement for the payment indicated the success of its shrimp genetics work since then.
“Further to the acquisition of aquaculture breeding programmes centred on shrimp from Centro de Investigación de la Acuicultura de Colombia Ceniacua on 11 August 2016, $450,000 of contingent consideration is payable following the satisfaction of specified operational milestones,” UK-based Benchmark said in a press release.
Payment in equity
“At the Company’s discretion, the contingent consideration is payable in ordinary shares in the Company using an agreed formula. The Company has therefore issued 536,272 Ordinary Shares of 0.1p each in the capital of the Company.”
Benchmark has applied for the shares to be admitted to the Alternative Investment Market (AIM), where its shares were this morning trading at around £0.61, and expects the admission will become effective from next Monday, January 18.
The share issue increases the number of ordinary shares with voting rights to nearly 669 million.
Chief executive Trond Williksen said the payment was a reflection of the success of Benchmark’s shrimp genetics operations since the acquisition was made.
“Through a team of leading geneticists, we successfully expanded our genetics business into shrimp and developed a Specified Pathogen Resistant (SPR) shrimp which will be rolled out in Asia in the coming year.
“Specialist genetics are a significant driver of sustainable production. The introduction of SPR shrimp will help improve sustainability in shrimp production and is an important growth vector for Benchmark, as we remain focused on becoming a profitable, cash generative group.”