Nature of Investment: US$35m of Cash Equity in 3 rounds:
Round A (current): US$2.5M by end May 2018 to fund Site Survey
(completed 2Q18) and Permitting (1Q19)
- minimum investment US$100,000;
Estimated pre-money valuation US$3M
Round B: US$20M by 1Q19 to build initial Grow-Out (by 2Q20)
Estimated pre-money valuation US$24M
Round C: US$12.5M by 4Q19 to complete installation
(first harvest 4Q20; full production 3Q21)
Estimated pre-money valuation US$71M
Each issue is an up-round and dilutive,
with preferential rights to invest in subsequent rounds.
Additional funding: OPIC Debt US$26M funded by 1Q20.
Estimated single-farm Y5 revenues are US$143m
with EBITDA of US$64m;
projected multiples at Year 7 are
86x (for Round A), 11x (Round B) and 6x (Round C).
BACKGROUND & FEATURES
Hi-Tec, Sustainable Open-Ocean Fish Farms
Fish farming is an efficient means to compensate for depleting wild fish stocks and provide protein-rich, cost-effective food for the planet’s growing population.
Our client is a Florida-based company working to develop scalable, open-ocean fish farms - profitably, sustainably and in an environmentally friendly manner - using cutting edge yet proven technology and information systems. Sites are in open-ocean locations, beyond shipping lanes, normal hurricane belts, tourist areas and sensitive sheltered environments.
A novel mooring system allows cages and platforms to move with ocean currents in a self-orienting manner and maintain the natural health of the fish as well as the surrounding ecosystem. Following onshore hatching, larval rearing and nursery stages fish are farmed in robust and resilient cages that are 50m in diameter x 15m in height in waters with a minimum depth of 50m. Each cage can hold up to 370,000 fish. Robots and automation are used to feed fish and to clean and harvest the farm remotely.
The initial project is for a site on the Pacific coast of Costa Rica to produce up to 10,000 tons of fish per annum for the North American market. Our client holds an exclusive licence to develop up to eight such farms in Costa Rica.
Non-US investors may subscribe through a Bermuda entity. Investments in these rounds will be at the holding company level, allowing subscribers to benefit from the development of subsequent farms. Alongside the equity rounds will be debt finance of US$26m to be repaid through cash generated.
Potential exit strategies include buy-out by Principals, merger, sale, IPO.
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