Aqua Fish Canada Inc.

BackgrounderThe background nurture relating to the bailiwick testing (Backgrounder) is provided to candidates in advance of the examination date. The Backgrounder contains development about both the connection and the constancy involved in the circumstance. Candidates ar expected to familiarize themselves with this information in preparation for the analysis that go out be required during the Case Examination.Candidates should note that they will not be allowed to bring any create verbally material, including the advance copy of this Backgrounder, into the examination centre. A new copy of this Backgrounder, unitedly with additional information about the company and a supplement of formulae and tables, will be provided at the writing centre for the Case Examination. Only the sideline models of calculators are authorized for use during the Case Examination1. Texas Instruments TI BA II Plus (including the professional model) 2. Hewlett Packard HP 10bII (or HP 10Bii) 3. Shar p EL-738C (or EL-738)Candidates are reminded that no outside research on the diligence related to this case is required. Examination responses will be evaluated on the basis of the industry information provided in the Backgrounder and the question paper (Additional Information).Overview Aqua Fish Canada Inc. (AFC) is a in private owned, Canadian company involvedin aquaculture in the marines. Aquaculture is the cultivation and harvest home of fish in a natural or manufactured environment. federally incorporated on May 1, 2002, AFC has open up a reputation for delivering a quality product Atlantic salmon on a by the way basis from its profitable fish lifts and is a growing, commercial operation. AFC builds and maintains fish farm facilities hatches, feeds, grows, and harvests Atlantic salmon and distributes the unprocessed fresh fish mainly to customers in Canada and the northeastern U.S. Company HistoryIn early 2002, lead Maritimers with backgrounds in the fishing industry (J oel Palango, Wendy Starky, and Jeanne Poirier) decided to search for potential drapement opportunities that would help the local Maritime economy. They observed that, with access to plentiful water and site resources, a too large workforce with a background in fishing, and governments eager to create employment, the aquaculture industry was growing along the eastern coast of Canada. Although they knew that there would be no revenue until the start fish grew large enough to sell, they were prepared to reside several years to realize a return and they decided to invest in an aquaculture business. Aqua Fish Canada Inc. was incorporated and the first decision make by the three shareholders was to establish an Atlantic salmon aquaculture farm.Guy Mills, an experienced aquaculture executive, was employ to build the business from the ground up. The first farm site was established within six months and operations began in November 2002 with the first spawning of fish. By October 2004, a sufficient number of farmed fish had reached a marketable weight and AFC harvested its first batch of salmon. Over the next five years, the company established three more salmon farm sites in three provinces as shown in Table 1 below.