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 FOREIGN MARKETS EXPANSION
Foreign Markets Expansion
ISL is planning to construct hatchery facilities in Morocco, Chile, and possibly China.
The company already has a 15% equity ownership interest in a Morocco-based company called Aquasur. ISL provides Aquasur with their shellfish technology; specifically scallop seed, free of charge. In return, Aquasur has promised to provide ISL with 50 miles of coastline to build hatcheries. The Moroccan employees will be trained in Canada, which will enable them to efficiently work on the Moroccan facility. The Moroccan hatchery will sell shellfish exclusively into the French and Spanish markets. There is also an economic advantage to opening a facility in Morocco. Labor costs in Morocco are roughly 60% of Canadian labor costs.
ISL has parties in Chile interested in black cod's sister fish, Chilean sea bass. The technology used to produce Chilean sea bass is similar to the technology to produce black cod. As such, management is currently investigating developing a Chilean sea Bass farming operation based on our existing sablefish techniques. Given the worldwide demand for Chilean sea Bass and the current over-fishing problems, management believes that a unique opportunity exists to capitalize on ISL's production technology.
Potential Foreign Acquisitions
ISL has currently identified potential acquisition targets. The first company, Aquasur, (described above) already has a partnership agreement with ISL. It operates a commercial scallop and oyster farm in the Khnifiss Lagoon, south of Tan Tan, Morocco. This potential acquisition would provide ISL a great opportunity to expand into foreign markets and diversify its product line. In addition, Aquasur is currently in a cash flow position with excellent potential for significant revenue growth.
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 SCALLOPS BLACK COD GENERAL FISHERIES  FOREIGN MARKET EXPANSION |
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