The global leader in aquaculture technology

Letter of Intent for acquisition of the assets of Future Sea Technologies Inc.
14 September - 2007

LOI headlines

AKVA has agreed to acquire the assets of Future Sea Technologies Inc. (FST)

FST is incorporated in British Columbia, Canada The company holds a number of patents and patent applications in connection with enclosed and semi enclosed floating fish farming systems.

FST is a provider of closed compartment sea farms.

The letter of intent is binding but subject to due diligence examinations to be performed by the end of October 2007. Agreement to be finalised by 15 Nov 2007 The agreed consideration for the assets is CAD 500,000 AKVA intend to introduce the system in the Chilean market with the main focus to provide enclosed and semi-enclosed systems to the freshwater and brackish water fish farms.

By the acquisition AKVA expect to be able to assist the Chilean industry in their strive to improve smolt quality. AKVA also intend to explore the possibility to combine FST technology with UNI Aqua recirculation technology, thus creating floating recirculation fish farms.

Farm using FST technology

Future Sea Technologies brief background

FST is a supplier of floating enclosed rearing aquaculture technology by providing cost-effective, ecologically friendly products The founders are Clayton Brenton and Ted White who has gathered a significant experience within closed compartment fish farming systems. The company is privately held Canadian company formed in 1994
The companys main office is located in Nanaimo, Vancouver Island, Canada

The company has delivered/designed systems to a the following countries over the last few years:
Canada, Australia, USA and Chile.

The FST systems have been delivered for farming of the following species:
Salmon and trout , Sablefish and Shell fish (pumps)

The primary product is called the SEA (Sustained Environmental Aquaculture) System. The system h includes the physical hardware and the biological softwareoperational processes to optimise the use of the technology
Farm using FST technology

Opportunities and synergies

AKVA plan to introduce the system in the Chilean market with the main focus to provide innovative systems to the freshwater and brackish water salmon farms.

By the acquisition AKVA expect to be able to assist the Chilean industry in their strive to improve smolt quality. AKVA also intend to explore the possibility to combine FST technology with UNI Aqua recirculation technology, thus creating floating recirculation fish farms.

AKVA expect to the acquisition of FST to add volume to the Wavemaster and Polarcirkel cages systems. AKVA expect to integrate this technology into the existing process control products the company has already develop for the aquaculture industry. AKVA also expect the acquisition to add volume to the UNI Aqua recirculation technology. Closed compartment floating fish farms could also provide a solution for fish farming in many parts of the world troubled with algae blooms and / or polluted waters in periods. AKVA is also evaluating other potential uses of the technology at the moment.