Bluefin tuna producer Umami Sustainable Seafood said it has “substantial doubt” about its ability to continue operations.
In its most recent financial report, the company said it does not “currently have sufficient available cash, available financing and projected cash flows to fund its operations for the next 12 months.
San Diego-based Umami recorded a net loss of USD 9.4 million (EUR 7.1 million) for the six months ending 31 December.
The continuation of the company is dependent upon its 2012-2013 harvest season, successful completion of additional financing arrangements and/or modification of existing financial agreements, and/or sale of the company’s treasury stock to third parties. Umami plans to attempt to raise additional funds to finance its operating and capital requirements, including repayment of current financing arrangements and operational expenses, through a combination of equity and debt financings.
However, Umami warned that might not be successful. Past attempts at issuing debt were achieved “with commercially unfavorable terms, sometimes with warrants to purchase shares of its common stock.”
In addition, on 31 December 2012, USD 30 million (EUR 23 million) was due under a credit facility which Umami did not pay and has not paid as of today, and an additional USD 22 million (EUR 17 million) in principal and interest payments was due under credit facilities in February and March 2013, of which USD 10.3 million (EUR 7.9 million) was repaid in February and March 2013. In 2013, Umami owes principal repayments of USD 53.3 million (EUR 41 million) to financial institutions and unrelated third parties and approximately USD 2.4 million (EUR 1.8 million) in interest payments due on financings from financial institutions and unrelated third parties.
