2.5m of yellow tail, page-7

Should be a good year Fringedweller:)

Australis strikes deal with new seafood production company
8-January-07 by AAP

Perth-based seafood company Australis Aquaculture Ltd has acquired 10 per cent of a new Western Australian Yellowtail Kingfish production business.

Australis today said it had bought 2.5 million shares, or 10 per cent of the issued capital, of Western Kingfish Ltd (WKL) in exchange for the use of its technology and services.

Western Kingfish, a Western Australian company, was formed through the acquisition of the aquaculture assets of a private company at Jurien Bay. Its initial investment of $6 million started on January 1, this year. Western Kingfish is controlled by interests associated with Mervyn Collinson and has as a board member Robert Gould, a co-founder of private equity advisers Javelin Partners.

Australis, which imports, grows, and exports barramundi to the US, said it would provide Western Kingfish with access to its extensive network of 160 wholesale distributors, and more than 600 supermarkets in the US.

It will also provide a species specific licence to use its patented recirculation technology in Australia.

The company said it does not expect to put forward any "significant monies" during WKL's development period.

"Australis' Board believes this related party transaction to be in the best interests of the company as Australis will access WKL's Yellowtail production experience without material expense or management input," a company statement said.

Under the agreement, Australis has the exclusive right to jointly develop US-based kingfish production, and will act as Western Kingfish's exclusive selling agent in North America, the statement said.

Western Kingfish, which aims to develop production in Yellowtail Kingfish, has a land-based fish hatchery and grow-out facility in Jurien Harbour, and a sea bed lease with 10 sea pens.

An application for production through additional submerged offshore sea pens and a tanker ship production unit is pending, a company statement said.

Australis's non-executive chairman, Stewart Graham, and his associates at Jurien Bay, are Western Kingfish's other founders.

The deal is subject to shareholder approval.

http://www.wabusinessnews.com.au/en-story.php?/1/47557/Australis-strikes-deal-with-new-seafood-production-company/dba