Farmed Florida pompano. (Photo: acesag.auburn.edu)
FRV Media to acquire aquaculture company Global SeaFarms
Thursday, January 12, 2012, 22:30 (GMT + 9)
Film and television content provider FRV Media Inc. (FRV) has announced that it has entered into a non-binding letter of intent with Global SeaFarms Group Inc. (GSF) for the acquisition of 100 per cent of the issued and outstanding shares of GSF.
GSF is a private company in the business of developing and acquiring aquaculture projects in the Americas. The purchase price will be determined by GSF and FRV further to their respective due diligence review and will be satisfied through the issuance by FRV of post-consolidated common shares.
GSF is pursuing a unique growth strategy aimed at two key focus areas: warm water opportunities in the region of the Caribbean Sea, and cold water opportunities in North America.
GSF currently has a highly scalable operating platform in the Dominican Republic and is engaged in identifying and acquiring additional operating rights and assets in the region. The company is also evaluating a number of opportunities in Canada in support of its cold water development strategy.
GSF's operations in the Caribbean are conducted through its wholly-owned subsidiary, Caribbean Sea Farms S.R.L. (CSF), incorporated in the Dominican Republic.
CSF holds what it believes to be one of the largest aquaculture operating permits on the Caribbean Sea, located in the Salinas district on the south west coast of the island. The permit allows CSF to engage in the production of 10 different species of fish, including its current species focus on Florida pompano.
The company has a fully integrated operating platform encompassing a commercial scale hatchery facility in the Dominican capital of Santo Domingo and the farm site operation in Salinas.
CSF is actively engaged in securing additional site rights on the island and expects to be granted at least two additional sites of similar size to its existing site in 2012. CSF believes that the Caribbean Sea represents one of the last unexploited aquaculture regions of the world and it is CSF's objective to build a major aquaculture business in this region through a strategy of acquisition and new project development.
Upon completion of the GSF transaction, GSF will be a wholly owned subsidiary of the resulting issuer.