NEW YORK, Dec 15, 2004 /PRNewswire-FirstCall via COMTEX/ -- HQ Sustainable Maritime Industries, Inc. (HQ) (HQSM), a Delaware corporation engaged in integrated aquaculture and aquatic product processing, announced today that its wholly owned subsidiary, HQ Sustainable Maritime Marketing Inc. (HQMM), has signed a Letter Of Intent (LOI) with American River Nutrition (ARN) to cooperate in the development and manufacture of nutraceuticals and feed additives for human and acquaculture purposes, using the existing facilities of HQMM in China.
ARN has know-how to develop unique nutraceuticals for aquaculture feeds. These ingredients are directed at improving general health, growth, feed conversion and meat quality of fish and shrimp. ARN is currently developing a product that can boost the immune system of shrimp to ward off common viruses. ARN intends to develop fish and shrimp nutraceutical feed additives that help deliver nutrients to the ultimate consumer, a process that is called actualized nutraceuticals.
Under the terms of the LOI, ARN would work with HQMM to develop and validate nutraceutical technology and coordinate the application of nutraceutical ingredients in feed products for tilapia and shrimp, particularly developing nutraceutical feed additives in HQ's nutraceutical plant.
HQMM and ARN would also manufacture, develop, and market clinically tested nutraceutical products for human consumption, focusing on clinical tests and product promotion in Asia. The LOI foresees the payment of a royalty to ARN for use of its patented nutrient technology and the co-development of new technology to be owned jointly. HQ will deploy its nutraceutical plant in the manufacture of such new discoveries.
Said Norbert Sporns, CEO of HQ, "We look forward to accessing leading American technologies in nutraceuticals provided by American River Nutrition. I believe the unique combination of aquaculture feed technology using actualized nutraceuticals and the production and development of nutraceutical products will help make HQ a leader in this field in China. China is the leading producer of farmed tilapia in the world. HQ is a public company in the United States, its main market, and has raised capital for the development and acquisition of leading nutraceutical technologies which complement its unique vertically integrated aquaculture business and China-based production."
Said Dr. Barrie Tan, President of American River Nutrition, "We anticipate that partnering with HQ in the development of nutraceutically enriched feed products will benefit both companies. We have worked with HQ over the years and find that we are on the threshold of a new era in the use of actualized feeds. Such feeds, sourced completely from natural products, provide the ultimate application of science to aquaculture and will allow HQ to achieve its target of producing healthy, nutritional, chemical-free tilapia and shrimp for its customers."
About HQ Sustainable Maritime Industries, Inc.
HQ Sustainable Maritime Industries, Inc. (HQ) is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in the South China Sea. HQ's activities include using renewable ocean resources, practicing cooperative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. Its variety of farmed and ocean- harvested products -- ranging from tilapia and shrimp to squid and red snapper -- are sold around the world. The Company holds HACCP certification from the U.S. FDA and the EU Code assignment of quality, permitting its products to be sold in these international markets. The Government of China has also certified HQSM as a leading agricultural enterprise.
Recently HQ acquired Hainan Jiahua Marine Bio-products Company Limited (Jiahua), a nutraceuticals and health products company in China, which is HACCP certified and produces and sells products subject to stringent laboratory tests certified by the China Ministry of Health. This plant produces nutraceuticals, which enrich feed used by HQ's cooperative aquaculture operations. In addition to operational offices based in Haikou, Hainan, HQ has offices in Montreal, Hong Kong, New York City, Beijing, and Shanghai. (http://www.hqfish.com)
About American River Nutrition Inc.
American River Nutrition (ARN) is primarily focused on the discovery, development and extraction of nutraceuticals from natural sources. Examples of such sources include rice, soy, palm, carrot, annatto, marigold and tomato.
To maximize this sourcing, ARN persists in researching new raw materials. ARN is also involved in improving existing extraction technology by process-design upgrading (PDU) and unit-process shortening (UPS). Applications and uses are generally focused in the vitamin, mineral and supplement, food and beverage, animal health, drug and cosmetic market sectors. ARN has developed DeltaGold(R) which is 50 times more potent than tocopherol, or Vitamin E, which is an excellent anti-oxidant and cholesterol moderator.
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of HQ Sustainable Maritime Industries, Inc. (the Company) to be materially different from those expressed or implied by such forward- looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at http://www.sec.gov under "Search for Company Filings."
Consulting For Strategic Growth I, Ltd. ("CFSG") provides the Company with consulting, business advisory, investor relations, public relations and corporate development services. Independent of CFSG's receipt of cash compensation from the Company, CFSG may choose to purchase the common stock of the Company and thereafter liquidate those securities at any time it deems appropriate to do so.