Ann: SFG Demerger Letter to Optionholders, page-6

Having discussed this with Directors at the EGM it is quite clear that the demerger was a condition of the deal with Nissui - they want the company to focus purely on aquaculture and the demerger was the simplest way to meet the Nissui requirement without having to devote too much resources to selling CO2 or rushing and therefore impacting value.

Now that the demerger has happened the directors (who own a very large share of the CO2 company) will seek buyers for the business. Indications were that there is interest from a number of parties and an acceptable offer is likely to emerge which we smaller holders can sell into.

As I have previously noted it is a shame in some respects because CO2 is profitable but the benefits of the Nissui association outweigh the attachment to CO2.