Barramundi Group plans to conduct a comprehensive restructuring scheme as it deals with financial difficulties.
In a 6 September press release, the Singapore-based barramundi farmer announced it has hired KordaMentha, an independent advisory and investment firm, to “implement a comprehensive restructuring scheme at the holding company.”
“Their expertise will be instrumental in guiding the company through the process of solidifying a restructuring plan that is aimed at securing the financial sustainability of the company,” Barramundi Group said.
The restructuring will impact shareholders, it said.
“While the specifics of this restructuring are being fine-tuned, it is expected to materially affect the value of the company’s shares,” Barramundi Group said. “The company is committed to working closely with KordaMentha to finalize a strategy that will lead to a best possible outcome for all stakeholders.”
Barramundi Group was placed on the Oslo Børs penalty bench in June 2024 after failing to report its 2023 financial results in a timely manner. It still has not reported its 2023 results but plans to do so 7 October 2024 and host its annual general meeting 21 October 2024. It had planned to release its 2023 annual report on 13 August 2024, in advance of its annual general meeting on 27 August and its H1 2024 report on 30 August 2024, but did not do so. It blamed the delays on “ongoing corporate restructuring efforts, requiring additional time for finalization.”
Barramundi Group CEO James Kwan did not respond to SeafoodSource’s request for additional comment on the company’s financial status or its reorganization plan.
“Further updates will be provided as the restructuring process progresses,” the company said in its release.
Barramundi Group previously released delayed results for 2022, and when it finally did so, they showed it recorded a SGD 31.9 million (USD 23.6 million, EUR 21.6 million) loss for the year.
The Oslo Børs, or Euronext Oslo exchange, does not issue any penalty to companies on its penalty bench other than publicizing the fact the company has repeatedly not complied with the exchange’s rules.
In August 2024, Barramundi Group added Eric Tsang as an independent director – the latest in a series of moves that have significantly altered the composition of its corporate board.
In June 2024, Barramundi Group announced it had hired Malta’s AquaBioTech Group to design and build its recirculating aquaculture system (RAS) facility in Brunei, where it plans to concentrate its operations after offloading its Australia farms to Tassal and the closure of its farms in Singapore.
The new RAS broodstock and hatchery facility is the second key milestone in the company’s strategic development plan for expansion in Brunei, after it opened an RAS nursery capable of producing 6 million juveniles annually. The contract calls for the completion and commissioning of the facility by November 2024. Once that happens, the Brunei operation will be fully self-sufficient; with broodstock, live-feed, larviculture, fry, and fingerling production for its current stocking at sea, according to Kwan.
“Having this new RAS broodstock and hatchery facility integrated into our existing and operational RAS nursery is a gamechanger. When commissioned, we will be able to produce consistently, the highest-performance juveniles from our own pathogen-resilient and genetically-superior broodstock, unhindered by external constraints,” Kwan said. “For Brunei Darussalam, a second state-of-the-art RAS facility in the country enhances its overall food and biosecurity posture and adds another cornerstone in its nascent but fast-growing aquaculture sector.”
Barramundi Group also hopes to build a land-based RAS grow-out facility with a 3,000-metric-ton annual capacity in Mengsalut, Brunei, also to be built by AquaBioTech.
“AquaBioTech has proven to be particularly suited to designing a tropical RAS with [its] deep multuidisciplinary bench and track record,” Kwan said.
Additionally, Barramundi Group said its UVAXX subsidiary, which specializes in fish health and autogenous vaccine development, has developed a novel epitope-based vaccine that can defend against scale drop disease virus (SDDV) infection in barramundi. The disease had resulted in catastrophic losses at the company’s farms in Singapore, resulting in their closure.
“Through our 12 years of experience working with farmers to provide veterinary services and fish health solutions, we have witnessed the severity and devastation caused by SDDV,” the company said in a June press release. “Until today, there are no commercially available solutions. We are proud to be on track to be the first to bring the solution to market.”
The company worked with A*STAR Infectious Diseases Labs to develop the vaccine.
“Efficacious vaccines remain the most critical tool for enabling a paradigm shift in aquaculture disease management from a reactive to a preventative approach and transforming farm production unit economics,” it said. “We look forward to collaborating with A*STAR to develop more impactful vaccine solutions for farmers.”
UVAXX plans to conduct commercial-scale field trials and work on development of the vaccine manufacturing process before pursuing regulatory approval and commercialization.
