January 11, 2014

 

Borneo aquaculture firms enter joint venture agreement

 

 

Borneo Aqua Harvest's subsidiary Plentiful Harvest Sdn. Bhd. (PHSB) had entered into a joint venture agreement with oyster producer City Harvest Aquaculture Sdn. Bhd. (CHASB).

 

Under the agreement, CHASB is allowed to utilise the whole of one parcel of land situated at Pulau Palak and three parcels of land -Mile seven, Jalan Airport and Sandakan- and whatever facilities therein for the business.

 

Plentiful Harvest was established with the focus on marine fish breeding and hatchery to support the local marine aquaculture industry and to reduce dependence on foreign imported fish fry and fish.

 

CHASB is principally engaged in carrying on business in import and export, supplies and distribution of oyster aquaculture and other related aquaculture products.

 

PHSB agrees to provide the whole of the said land to CHASB for the purpose of the project; and to indemnify and keep CHASB indemnified against all claims, losses and other damages that CHASB may suffer as a result of or arising from PHSB's acts and omissions.

 

City Harvest agrees to utilise the whole of the said land for the said project only and to indemnify and keep PHSB indemnified against all claims, losses and other damages that PHSB may suffer as a result of or arising from CHASB carrying out the said project.

 

Plentiful Harvest shall be entitled to appoint up to three of its representatives to be the directors of CHASB in addition to the remaining three existing directors of CHASB and to receive 50% of the net profit of CHASB (with no distribution of the net profit within the first and second year of operations).

 

For the financial year ending March 31, 2014, the JVA is not expected to have any financial effects on net assets per share, management, share capital and substantial shareholders' shareholdings in Borneo Aqua Harvest.

 

The company highlights that none of its directors or substantial shareholders, or persons connected with them have any direct or indirect interest in the JVA. The JVA is not subject to the approval of the shareholders of Borneo Aqua Harvest.

 

 

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