Conversion of Convertible Loan Note and Further Equity Investment in Minnowtech LLP
19 March 2021
OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, is pleased to announce that it has elected to convert all of its 6% Convertible Loan Notes (the "CLNs") issued by Minnowtech LLP ("Minnowtech") into ordinary shares in Minnowtech. In addition to converting the CLNs, OTAQ has also agreed to a further equity investment of $150,000 in Minnowtech (the "Equity Investment"). Following conversion of the CLNs and the Equity Investment, OTAQ will hold a beneficial interest in approximately 15.2% of Minnowtech's issued ordinary share capital.
Minnowtech is an innovative US-based aquaculture technology company that has developed a proprietary imaging platform, incorporating OTAQ's sonar technology, that enables commercial-scale shrimp producers to accurately and automatically measure shrimp abundance in order to optimise feeding regimes and reduce disease challenges. Minnowtech's unique IP and data-based imaging tool will enable shrimp farmers to optimise the health and growth of their crop, thereby enhancing the productivity of their shrimp harvest. The Food and Agriculture Organization of the United Nations estimated the size of the farmed shrimp market in 2018 to be 5.1 million tonnes, with a value of $31.2 billion.
The additional investment and the agreement for OTAQ to supply Minnowtech on an exclusive basis with sonar hardware for its shrimp biomass analysis systems strengthens the development agreement entered into in early 2020, giving both parties a stronger relationship and capability in innovative product and market development.
Commenting on the investment in Minnowtech, Phil Newby, Chief Executive at OTAQ, said:
"We have been very impressed by the progress and opportunity at Minnowtech. Our strategy is focussed on exploiting technical collaborations with those who have capabilities in related product areas and with access to new markets for OTAQ. Minnowtech fits this brief well and both sides can see additional opportunities emerging as the developments progress."
Ken Malone, co-founder of Minnowtech added:
"Working closely with the OTAQ group over the last year has accelerated our product development as they bring their experience in commercialising technologies to the partnership. We're excited to expand this relationship as we move into full scale product launch."
Alex Hambro, Non-Executive Chairman
Phil Newby, Chief Executive Officer
Matt Enright, Chief Financial Officer
Dowgate Capital Ltd (Broker & Adviser)
020 3903 7715
David Poutney/James Serjeant
Walbrook PR Ltd
Tom Cooper/Nick Rome/Nicholas Johnson
0797 122 1972 or 07748 325 236 or 07884 664 686
OTAQ is a highly innovative marine technology company focused on the marine aquaculture, offshore energy, renewables and oceanographic research sectors. It has 42 employees in four worldwide locations: Lancaster, Aberdeen and Ulverston in the UK and Puerto Montt in Chile. OTAQ's marine technology portfolio includes a market-leading intelligent acoustic deterrent system, designed to protect marine-based aquaculture sites from predation, with multiple systems deployed in Scotland, Chile, Finland and Russia.
The Oceansense leak detection systems have a global reputation as the industry standard solution and have been deployed successfully on hundreds of jobs. The Dragonfish laser measurement system is fast becoming recognised as one of the most accurate underwater precision laser measurement systems available. OTAQ also has significant experience in the design & manufacture of underwater connectors, penetrators & communication systems.
It seeks to develop and continuously improve its products using its specialist mechanical, electronic and software engineers with decades of experience in bringing underwater technology products to market.
OTAQ is proud to be fully ISO 9001;2015 accredited through DNV-GL. ISO 9001 is an internationally recognised quality management system and demonstrates OTAQ's commitment to consistency, continual improvement and customer satisfaction. The certification also demonstrates its ability to consistently deliver products and services to market whilst meeting statutory and regulatory requirements by applying an effective quality management system.
Minnowtech is an aquaculture technology company that provides a software imaging platform that enables shrimp farmers to estimate shrimp abundance. Using Minnowtech's data-based imaging tool, shrimp farmers can optimize the health and growth of their crop, enhancing the harvest of market-size shrimp. Learn more: www.minnowtech.com