The Company has set up a joint venture company under the name AgriMarine Norway AS ("AgriNor"), with ZED Financial Partners of Toronto and Midos AS of Oslo (collectively the "Norwegian JV Partners"). In terms of the collaboration agreement signed between the Company and the Norwegian JV Partners (the "Agreement"), AgriMarine will license its technology and know-how to AgriNor and provide technical and financial support.
Norwegian Fish FarmingNorway is the epicentre of salmon and trout production in the world today. With over 1,000 total farm sites and 65-70% of the total global farmed salmon market in terms of both tonnage and value, Norway must figure prominently in any new development in farm technology. This large ratio of the global business also means that salmon farming is a critical part of the coastal economic picture in Norway with over $7 billion in direct economic impact. This industry is under pressure however with environmental and consumer pressure to change from conventional net cage practices. Economic losses due to parasites, escapes and disease are other factors that will drive great interest to the floating closed containment solution offered by AgriMarine through this new joint venture.
With commercial scale technology and production established in Benxi, China, the Company has proven that its production costs are comparable with industry standards for net cage operators.
Under the terms of the Agreement, the Norwegian JV Partners will apply for concessions earmarked for closed containment fish farming in Norway, with the aim of establishing a closed containment demonstration facility for the rearing of salmon. The Norwegian JV Partners will arrange for both technical and financial support from Norwegian Government agencies and industry participants. AgriNor will also pursue additional concessions earmarked for closed containment fish farming in its own right and in partnership with other industry participants, in order to commercialize AgriMarine's solid wall closed containment technology throughout Europe.
Mr. Geir Spiten, a member of the Norwegian JV Partners, has been named President of AgriNor and will report to the Board of Directors of AgriNor. Mr. Spiten is a Certified Information System Auditor with extensive consultative experience in the aquaculture industry in Norway. Mr. Spiten has also worked as Principal Consultant at Pricewaterhouse Coopers. AgriMarine has appointed Mr. Sean Wilton as its representative for the joint venture and will serve as Director of Technology and Engineering within the management team of AgriNor. Mr. Wilton is President of AgriMarine's operating companies and has extensive worldwide engineering experience in closed system technology for the rearing of salmon and other fin fish.
Commenting on the expansion of AgriMarine into Europe, Mr. Richard Buchanan, CEO of AgriMarine said, "There is tremendous political, consumer and ENGO pressure on the salmon farming industry to improve business practices to make farming environmentally sustainable. AgriMarine's technology aims to solve sustainability issues by offering a better farm management system that has the ability to expand growth in the industry while protecting the receiving water conditions."
