OTAQ invests in US-based aquaculture technology company Minnowtech
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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 (CLNs) issued by Minnowtech LLP 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. 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."