The investment is made possible through the Department of Innovation, Business and Rural Development, and will ultimately support the overall viability of the company’s fish harvesting efforts in Newfoundland and Labrador.
“The Provincial Government has been providing loan guarantees for vessel financing in the inshore and near shore sectors for over 30 years, and recently enhanced the Fisheries Loan Guarantee Programme to provide greater opportunity for fish harvesters,” said Derrick Dalley, Minister of Fisheries and Aquaculture.
“By investing in Icewater Harvesting Inc., our government will satisfy the company’s need for new financial support for harvesting operations. In addition, the investment provides improved utilisation and security of access to adjacent groundfish resources for the long-term benefit of Newfoundland and Labrador.”
Through this strategic investment, quotas currently used by the company and owned by the province will be utilised more effectively – more fish will be caught with the new vessel capacity. These quotas have been leased from the province since 2004 and are currently valued at between C$16 million and C$20 million.
“The fishery is a challenging business which is oftentimes hindered by ever-changing global supply and demand for seafood,” said Keith Hutchings, Minister of Innovation, Business and Rural Development.
“The Provincial Government works with the seafood industry to help augment the changing face of the fishery and promotes sustainability through initiatives that focus on innovation and growth. This new investment is a prime example of the important work our government undertakes to support the seafood industry throughout Newfoundland and Labrador.”
Icewater Harvesting Inc. is a Newfoundland and Labrador-owned enterprise. The company employs approximately 40 people from communities throughout the province. The C$2 million equity investment in the form of shares will be redeemed within eight years of the agreement and carries a dividend of three per cent annually.
“Icewater Harvesting Inc. is pleased to receive this new funding,” said Alberto Wareham, President and Chief Executive Officer of Icewater Seafood.
“Our company works very hard to provide jobs and other economic benefit to the Province of Newfoundland and Labrador. Our company has been part of the fishery for generations and we are proud of what we have achieved thus far. The partnership we have developed with the Provincial Government continues to be an important aspect of our operation and will undoubtedly be an important part of our success in the future. We look forward to the contribution we will make to the seafood industry here in Newfoundland and Labrador for many years to come.”