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FRV Media Inc Announces the Execution of a Non-Binding Letter of Intent With Global SeaFarms Group Inc.(January 09, 2012)
MONTREAL, QUEBEC -- (Marketwire) -- 01/09/12 -- FRV Media Inc. ("FRV" or the "Corporation") (TSX VENTURE:FRV.H) is pleased to announce that it has entered into a non-binding letter of intent with Global SeaFarms Group Inc. ("GSF") for the acquisition of 100% of the issued and outstanding shares of GSF (the "GSF Transaction"). 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.
The annual and special meeting of the shareholders of FRV (the "Meeting") will be held on January 31, 2011 to consider and approve certain aspects related to the GSF Transaction in accordance with the requirements of the Canadian Business Corporations Act, including the appointment of the new board of the resulting issuer, the consolidation of the common shares, new auditors for the resulting issuer and the change of name, all of which will be subject to completion of the GSF Transaction.
Global SeaFarms Group Inc.
GSF is a privately owned company in the business of developing and acquiring aquaculture projects in the Americas. The company 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. Florida Pompano is a highly prized white-fleshed fish indigenous to the waters of the Caribbean. 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 is to build a major aquaculture business in this region through a strategy of acquisition and new project development.
Aquaculture is the world's fastest-growing source of animal protein and currently provides nearly half of all fish consumed globally, according to the Food and Agriculture Organization (FAO). The growth in global aquaculture production is being driven by population increases, shifting demographics (older people eat more seafood), health and diet concerns, and growing wealth in developing countries, combined with a constrained worldwide wild catch fishery that plateaued in the mid-1990's. GSF believes that these macro trends create a strong context for its expansion and development plans.
The market opportunity for aquaculture production in the Americas is primarily driven by the $80B U.S. seafood market which is reported by the National Oceanic and Atmospheric Administration (NOAA) to have imported 5.5 billion pounds of seafood in 2010. It is GSF's strategy to develop and acquire production assets close to the U.S., and optimally position itself for growth in this market opportunity.
Upon completion of the GSF transaction, GSF will be a wholly owned subsidiary of the resulting issuer.
No regulatory authority has in any way passed upon the merits of the proposed transaction and nor have they approved nor disapproved the contents of this news release.
FRV Media Inc.
Noah Billick, Director
Global SeaFarms Group Inc.
W. Cameron McDonald - CEO
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