Silver Bay selling shares in $25m processing plant

December 27, 2012, 8:12 am

Sitka, Alaska-based Silver Bay Seafoods has acquired property in Bristol Bay for a new processing operation and plans to sell shares in the operation to raise the $25 million needed for construction.

Beginning in 2014, Silver Bay hopes to process large portions of the Bristol Bay driftnet salmon fishery, and the Togiak sac-roe herring fishery, reports Alaska KCAW radio.

The company has purchased eight acres of industrial zoned property on the Naknek River adjacent to the Leader Creek Seafood’s facility, and plans to construct a high-volume processing plant on that land that will have the daily capacity to process and freeze 2.4 million pounds of salmon and 900 tons of herring.

To pay for construction of the plant Silver Bay Seafoods is offering to sell ownership interest for $25,000 for each one-tenth of one percent of the new company called Silver Bay Seafood’s-Naknek.

Silver Bay points out that the offering price of $25,000 per one-tenth of one percent is based on a $25 million capitalization of the new company. Silver Bay is purchasing a minimum ownership interest of 60% in the new company for $15 million.

The new processing facility in Naknek is scheduled to be up and operating in May of 2014 and the initial $25 million is expected to cover the actual cost of the real estate and the costs associated with building the new processing facility.

Silver Bay has already put up over $2 million to purchase the land for the new facility. The company said it will meet or exceed the highest ex-vessel grounds price and provide large volume, reliable tenders.

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