Thursday, November 22, 2012, 23:50 (GMT + 9)
Aquaculture technology company AgriMarine Holdings Inc has made a letter agreement with Norwegian Private Equity Group Akvatech AS to move forward the adoption of the AgriMarine’s closed containment fish rearing technology.
The agreement’s commercial terms include a CAD 2.5 million (USD 2.51 million) secured loan from Akvatech to the company’s subsidiary AgriMarine Industries Inc with a maturity date of 18 months; purchase of AgriMarine Holdings’s IP rights and experience within some Northern European countries; technology and sales licenses to some countries in Southern Europe, the Middle East/Mediterranean region and South America; sale of two 24m-AgriMarine System™ marine tanks for exhibition at a project in Norway; and the development and patent protection of a 30m-tank design with capacity of 5,500 m3.
AgriMarine tank in Middle Bay. (Photo: AgriMarine Holdings Inc)
Industries will enter into an IP and Licensing Agreement, under which Akvatech shall purchase the right, title and interest in the AgriMarine System™ fish-rearing technology for CAD 1.5 million (USD 1.5 million).
While AgriMarine Holdings will give Akvatech a license to use it within certain South American, Middle Eastern, North African and Southern European countries, AgriMarine will keep full and exclusive rights in Canada, the US and China. The Agreement also includes a provision for royalty payments to be made to AgriMarine from future sales of the AgriMarine System™ tanks in those territories.
Further,the Agreement has a provision for joint technology development whereby Akvatech will fund the continued design and development of a 30m-tank based on AgriMarine’s Version 2 marine system technology.
“This agreement with Akvatech not only validates our IP and signals the immediate sale of two AgriMarine tanks for use in Norway, and it also sets the stage for future tank sales and expansion throughout Europe”, said Sean Wilton, President and CEO of AgriMarine. “We are confident that the transaction will also bolster further support and interest from salmon producing companies in other territories such as Southeast Asia and Australia”.
“We believe that we
have the answer to sustainable salmon farming with substantial operational advantages in terms of reduced mortalities, improved feed conversion, and mitigation of sea lice infestations,” he added.
AgriMarine Holdings anticipates the completion of the definitive agreements by 7 December. The Transaction remains subject to certain approvals, including that of the TSX Venture Exchange.