Shares in recently-listed seafoods business Mareterram lifted today on news it has purchased the business that owns the 'Famous Australian Seafoods' brand for $1.3 million.
Under the terms of the binding agreement, Mareterram will also have the option to acquire the entire share capital in Perth-established Focus Fisheries for the target’s net tangible assets plus $150,000.
Mareterram shares were 10.5 per cent higher to 31.5 cents each at the close.
Focus began in 1998 to provide cooperative seafood marketing and product development services to independent fishermen. It also facilitated the access to export and domestic markets on their behalf.
The company went on to provide independent fishermen with a consulting service dealing in fishery-specific matters and negotiations with government and community groups.
Today, the business commercialises wild-caught seafood by providing contract marketing and sales services in export and domestic seafood markets.
It is a facilitator of contract offshore processing of Australian wild-caught seafood.
“Distribution of Focus’s Famous Australian Seafood brand via Mareterram trading as ‘Mareterram Foods’ will increase margins capture through vertical integration,” Mareterram said in a statement.
Mareterram has also appointed fishing veteran and major Focus shareholder Brett Hogan as the company’s new marketing and fisheries development executive manager of its subsidiary, Mareterram Fisheries.
Mareterram chief executive David Lock said it was a real coup for the business to attract a person of Mr Hogan’s calibre in the seafood industry.
“Mr Hogan brings decades of hands-on knowledge of the industry as well as both domestic and export markets,” he said.
“He will be of tremendous benefit to Mareterram’s operations and future expansion plans.
“As we prepare for the start of the 2016 fishing season at the beginning of April, the integration of the Famous Australian Seafood brand into the Mareterram Foods product offering will offer immediate benefits.”
Mareterram began trading on the ASX earlier this month after raising over $18 million from investors and completing a major corporate restructure.
