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This Month's Features


CELL AQUACULTURE LIMITED FORMS JOINT VENTURE WITH MALAYSIAN GOVERNMENT AND CONTINUES EXPANSION INTO OTHER MARKETS


Cell Aquaculture Limited (ASX Code:CAQ) has signed a formal Shareholders Agreement and License and Supply Agreement with the Terengannu Agrotech Development Corporation, an entity wholly owned and controlled by the Terengannu State Government of Malaysia.

The Managing Director of Cell Aquaculture, Mr Geoff Leding Wilton, said the agreement would enable the company to further develop its business activities in Asia.

“This is a significant step forward for Cell Aquaculture, with the company now well poised to capitalize on expansion opportunities into Asia’s high-end premium markets.

“Under the terms of the Shareholders Agreement, we have established a Joint Venture company to initially develop sufficient infrastructure to produce up to 700 tonnes per annum of finfish from a land based Cell production system.

“The establishment of the Joint Venture will generate revenues of approximately AUD$7.0 million directly to Cell Aquaculture during the 18 month development phase.

“Revenue will be derived primarily from sales of our proprietary equipment, license fees, project management and technical support services to the Joint Venture.

“At full capacity, the Joint Venture is expected to generate ongoing forecast revenues of approximately AUD$7.4 million per annum from fish sales. Cell Aquaculture holds 30 per cent of the issued capital in the Joint Venture Company.

“We have been very selective in whom we deal with, as in some countries our Intellectual Property and Trademarks could be jeopardized.

“That is why, in this instance, we are in business with the Government.

“Our major point of difference is that we are vertically integrated. We operate our own hatchery for fingerling supply; manufacture all our own key filtration components, supply technical management, brand development and expertise for value adding the finished product.

“Our markets vary in the type of product they want and we ensure that the product we deliver will meet market expectations.

“For example, the Japanese market is very specific in its requirements, and we will supply that market with Barramundi in a sashimi and live form.

Europe takes a broader range of fish and almost all product will be supplied fresh on ice at this stage.

“All product produced at our Fremantle head office is sold live to attract premium pricing. Our Fremantle site offers display facilities for our technologies and is also one of the centres where we conduct research and development.

We have grown rapidly since beginning operations and we are certainly keeping pace with our Prospectus.

We now have Joint Ventures in Malaysia, Holland and the United States.

“Also, we have recently supplied a production system to a publicly listed seafood company in Eastern Europe and are having ongoing discussions to deliver further systems into Europe.

“We are primarily focused on finfish species at present, with barramundi being our first commercial species.

“We are licensed for 16 species in America, and given production and translocation permits in that country can take up to two years to be issued; we believe it gives us a significant competitive advantage.

“We are always looking for further growth opportunities, which may include acquisitions” Mr Leding Wilton concluded