AGREEMENT ON SALE OF ”CLUSTER KJERRINGØY”

Codfarmers ASA has today, 14 October 2009, entered into an agreement with Marine Harvest Norway AS regarding sale of the company’s business in “Cluster Kjerringøy”. The sale comprises transfer of assets, rights and obligations related to the locations Vindvika, Movika and Tårnvika, including moorings, barges, boats and other equipment. Codfarmers ASA has today 6 employees related to the production on the location Tårnvika. Marine Harvest Norway AS pays a cash consideration of a total of NOK 17.5 million for the locations, of which leasing debt of NOK 3.6 million shall be deducted at the time of settlement. The cash consideration shall be paid out in two transactions, of which 30% is to be paid out in October 2009 and the remaining amount upon the transfer of the location Tårnvika in August 2010. The locations are principally sold at book values and therefore any accounting profit or loss will not occur upon the completed transaction. “We are very pleased with the agreement regarding the sale of the locations and fixed assets related to “Cluster Kjerringøy” to Marine Harvest Norway AS. The cash consideration from the sale will strengthen the financial position of Codfarmers ASA”, says Michael Malling, CEO of Codfarmers ASA. Following the sale of the three locations related to “Cluster Kjerringøy” Codfarmers ASA has a production capacity of 34,200 MAB (maximum allowed biomass). “The sale contributes to a further concentration of our locations and provides basis for more optimal utilization of these upon the realisation of the company’s growth-plans”, finishes Michael Malling. Oslo, 14 October 2009 Codfarmers ASA For further information, please contact: Michael Malling CEO, tel. +47 22 40 33 94

About Us

ABOUT CODFARMINGCOD BOOM The latest issue of “norsk Fiskeoppdrett” (#10, October 2007, www.kyst.no) focused on the development in cod farming and predicted a boom within the coming two years in this relatively new industry. The following extract of just one of the articles offers a brief background for the prediction. THE TABLE IS SET FOR COD Traditionally, the battle for fishing rights has been very hard. In recent history, it should suffice to mention the cod war between UK and Iceland, Canada throwing Portuguese and Spanish vessels out of its national waters when fishing at Grand Banks, as well as Iceland’s demand for fishing rights in what Norway considered Norwegian territorial waters. In 1987 2.1 million ton cod was caught in the North Atlantic. Since then, landings of North Atlantic cod has been reduced by more than 1.2 million tons down to 0.8 million tons in 2006. Iceland has announced a quota reduction in 2007/8 of 30% amounting to 65,000 tons of cod – this equals two years of total volume of cod caught in the Norwegian Lofoten fisheries. In the Barents Sea, quotas seem to remain stable so far. Volumes of cod from the North Atlantic appear to remain relatively stable in the medium-term and the gap between supply and demand has to be filled by aquaculture. THE MARKET Cod is no new species. With a global market of more than a million tons, the cod farmers don’t have to worry about first building the market. In Europe alone, 100,000 tons of fresh cod is sold annually. It is possible to increase this volume considerably with fresh cod and cod products without impacting prices negatively. Once can make a small comparison with the salmon farmers who produced 600 tons in 1974. They had to develop a whole new market for their products, which until then had been a small niche market. The cod farmers come to a table already set. They only need to fill it with good quality products. Extract of article in the publication “norsk FISKEOPPDRETT” Nr. 10, October 2007 (www.kyst.no), by Stein-Ove Hansen, Analyst, Terra Securities (un-official translation by Codfarmers)

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