28th Oct 2019 11:05
(Alliance News) - Benchmark Holdings PLC on Monday said it will receive a second and final payment of USD8.8 million from Empresas AquaChile SA due to the dissolution of a joint venture agreement between the two companies.
Shares in Benchmark, an aquaculture company with a focus on animal genetics, health, and nutrition, were down 3.0% at 47.06 pence in London on Monday morning.
Benchmark has now transferred ownership of the Ensenada facility in Chile, giving itself full control of the salmon breeding operation that had belonged to the joint venture. Moreover, Benchmark has obtained the intellectual properties rights, as well as "genetics stock and biomass in the joint venture".
The dissolution was announced in May, with the company receiving an initial USD7.5 million payment in June and set to receive the final USD8.8 million within five days of signing the dissolution agreement with AquaChile.
Endenada was described by Benchmark as "a highly bio-secure hatchery situated in the 'Los Lagos' region in Chile, with good access to spring water required for the production of high-quality eyed eggs suitable for the Chilean industry."
The facility is currently being adapted so as to become "suitable for maturation of broodstock, spawning and fertilisation of eggs". First eggs from the new facility are expected to become available in the first half of 2021.
"Chile is the world's second largest salmon producing country and is an important market in Benchmark's long term strategy. We remain focused on achieving full scale production at this bio-secure, land based facility," the company said.
By Anna Farley; [email protected]
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