Dear Fish Contract Holder:
Aqua Farming Tech is continuing to actively seek the additional capital it requires to maximize production of tilapia and its other crops. To date, we have been unable to close a financing transaction with the private asset based lending groups, with which we’ve been dealing.
The fundamentals of the aquaculture sector remain however undeniably positive: Aquaculture is the fastest growing segment within the global agribusiness category, steadily growing at a compound annual growth rate of roughly 9%, and farmed fish now accounts for 50 percent of the world’s fish that is used for food. For this reason, there have emerged aquaculture and agriculture industry specific institutional and private investors, located both in the US and internationally, which the Company is contacting in connection with its financing opportunity. The vision of Aqua Farming Tech is to become Western USA’s leading producer of premium quality, live and day fresh organic Tilapia, Shrimp and Moringa with annual revenues of $50 million +.
Our farm is making steady progress, as evidenced by the Company approaching break-even revenues. In May, farm manager, Rocky French, traveled to Uganda and the Philippines to arrange for the import of certain varieties of tilapia that will further increase the growth rates of our fish stock. The farm is generating revenue through increasing tilapia production because it is leveraging decades of know-how and millions in previous improvements. Today our farm company is cultivating socially responsible, sustainable food supplies and, developing innovations that we believe will have valuable industry wide application. Through April 2017, this year’s revenues were about $217,000 demonstrating the ramp up that’s taking place. Management is determined to obtain the financing that the Company requires, so tilapia production can be ramped to full production and so that cultivation of the farm’s additional crops, shrimp and Moringa, can be maximized, in which case, fiscal 2017 is projected to reach about $3 million.
Right now the farm is producing and selling close to 5,000 lbs of tilapia per week. In terms of performing on your fish contract, the farm must reach production and sale of 7,000 lbs of 1 to 1.5 lbs per week to cover operating costs; this production goal is forecast to be met in September, 2017. At the point these production/sales goals are met, the farm is in a position to allocate revenue from sales to retire fish contracts.
Although the need for additional capital continues to present real short term challenges, we believe the overall longer term future for the aquaculture industry in general, and our farm in particular, is very positive.
We will keep you informed as the farm continues to ramp its production and also report to you the results of our efforts to secure additional financing which will serve to accelerate the farm’s production.
We appreciate your patience and we apologize that our production has lagged behind forecasts.
Rocky French, President
Aqua Farming Tech Inc. ∙ 89635 Avenue 81 ∙ Thermal, CA 92274