AKVA signs US $150-million RAS deal with AquaCon
Aquaculture technology company AKVA Group has bagged a $150 million contract for a full grow-out recirculating aquaculture system (RAS) facility in the United States east coast.
Norwegian holding company AquaCon AS plans to build a land based facility in Maryland. The company plans to target the U.S. salmon market.
The first phase ofthe project is expected to produce 16,000 tons of salmon.
AKVA and Israel-based investment compamny Israel Corp. will jointly participate in a $5 million convertible loan. The two companys will have the option to invest an additional $15 million in the project.
Earlier this week, AKVA entered into an agreement with Israel Corp. that will result in Israel Corp. taking a 15 per cent ownership stake in AKVA.
As part of the transaction, Israel Corp. will become entitled to appoint one board member in AKVA as long as it holds a minimum 12 percent ownership position in the company.