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HALIFAX, Sept 6, 2016 CNW/ - (TSX: CLR): Today Clearwater Seafoods Incorporated announced its plan to invest in a new and innovative vessel for its Canadian clam fleet.
The investment, estimated at $70 million, will replace an existing 28 year old clam vessel with a state-of-the-art factory vessel that will deliver significant productivity and efficiency improvements through a more efficient harvesting platform. This investment follows the launch of the Belle Carnell in July 2015 which successfully allowed Clearwater to increase its catch of Arctic Surf Clams, Cockle Clams and Propeller Clams. The combined investments complete Clearwater's plan to sustainably harvest 100% of its Canadian Surf Clam quota employing the most advanced and proprietary clam technology in the world. The investment is directly tied to Clearwater's strategy of expanding access to supply of high demand, premium, wild and sustainably harvested seafood.
Following this vessel replacement, Clearwater's entire Canadian fleet will be fully renewed with no further vessel replacements planned over the next five years ending 2020. Including replacements and planned refits, Clearwater has invested $169 million in its fleet over the past five years creating one of the most modern and technologically advanced fishing fleets in the world.
The investment will begin during the third quarter of 2016 and is expected to be complete in time for the vessel to enter service by the second quarter of 2018.
The project will be financed through cash and existing debt facilities.
Ian Smith, Chief Executive Officer, commented "Global demand for seafood is outpacing supply, creating favorable market dynamics for vertically integrated producers. Clearwater is well positioned to take advantage of this opportunity because of its licenses, premium product quality, diversity of sustainably harvested species, global sales footprint, and year-round harvest and delivery capability."
Mr. Smith concluded "This new investment completes Clearwater's fleet modernization program and positions the company to execute with excellence on our extraordinary growth plans over the next five years. "
COMMENTARY REGARDING FORWARD-LOOKING STATEMENTS
This report may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, including, without limitation, statements regarding future plans and objectives of Clearwater, constitute forward-looking information that involve various known and unknown risks, uncertainties, and other factors outside management's control.
Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect including, but not limited to, total allowable catch levels, selling prices, weather, exchange rates, fuel and other input costs.
There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
For additional information with respect to risk factors applicable to Clearwater, reference should be made to Clearwater's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Clearwater's Annual Information Form.
The forward-looking information contained in this report is made as of the date of this release and Clearwater does not undertake to update publicly or revise the forward-looking information contained in this report, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
No regulatory authority has approved or disapproved the adequacy or accuracy of this report.
Clearwater is one of North America's largest vertically integrated seafood companies and the largest holder of shellfish licenses and quotas in Canada. It is recognized globally for its superior quality, food safety, diversity of species and reliable worldwide delivery of premium wild, eco-certified seafood, including scallops, lobster, clams, coldwater shrimp, langoustines, crab, whelk and groundfish.
Since its founding in 1976, Clearwater has invested in science, people and technological innovation as well as resource ownership and management to sustain and grow its seafood resource. This commitment has allowed it to remain a leader in the global seafood market and in sustainable seafood excellence.
SOURCE Clearwater Seafoods Incorporated
For further information: Tyrone Cotie, Treasurer, Clearwater, (902) 457-8181.