December 20, 2006

US aquaculture company raising money to build feedmill in Hainan, China

HQ Sustainable Maritime Industries Inc, a New York-based company, said it plans to raise about US$20 million by selling 4.2 million shares of its stock after a reverse 20-to-one stock split to finance a feedmill in China.

The company raises tilapia (a codlike fish) and white shrimp in China for export.

Officials said they would use the bulk of the proceeds to build a US$12 million organic feed mill and processing plant in Hainan Province, China, and to repay the balance of an approximate US$4 million outstanding promissory note.

According to HQ officials, tilapia is the fourth most popular seafood consumed in the US, behind shrimp, tuna and salmon and ahead of catfish and pollock.

HQ has developed a farming system that avoids the use of antibiotics, hormones and other potentially toxic chemicals, officials said in a statement.