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China Marine Buys Property



November 12, 2009 – Comments (4) | RELATED TICKERS: CMFO

China Marine Food Group announced this morning that it had won the auction to purchase a 40-year land use right on 8,600 square meters on the Shishi port. They will use this land to build a new cold storage facility at a cost of approximately $20mm, which will substantially increase their capacity.

As you can see from these photos of our visit there this summer, this land is truly right on the dock and should provide an advantage when it comes to acquiring fish.

This is looking left at the site:

And this is looking right at the water from the same spot:

Yeah, the boats are pretty close.

4 Comments – Post Your Own

#1) On November 12, 2009 at 2:41 PM, nilesgold (22.22) wrote:

Any word on how they plan on funding this purchase?

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#2) On November 12, 2009 at 2:46 PM, TMFTheSnake (< 20) wrote:

Out of the $30 million in cash on the balance sheet.

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#3) On November 12, 2009 at 5:51 PM, nilesgold (22.22) wrote:

Sorry, didn't realize you listed the link to the announcement which states "The Registrant intends to finance the total estimated $20 million in land use right and construction costs from funds generated by operations..."  That's good news as far as I am concerned, it's definitely preferrable to dilution.

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#4) On January 06, 2010 at 3:35 PM, csam7 (< 20) wrote:

do you think $8.30 is still a good entry point?

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