SOURCE: Edgewater Foods

November 24, 2008 08:30 ET

Edgewater Foods International Acquires Granscal Sea Farms, Adding Substantial New Production Capacity

GAITHERSBURG, MD--(Marketwire - November 24, 2008) - Edgewater Foods International, Inc. (OTCBB: EDWT), the first fully integrated shellfish producer with the largest private marine research hatchery in Canada, announced today that its operating subsidiary Island Scallops Ltd. (ISL) has acquired Granscal Sea Farms Ltd. for the sum of 400,000 restricted shares of EDWT common stock, a cash fee of $30,000, and the assumption of a $35,000 loan from the Bank of Montreal. Island Scallops shall also pay Granscal a sum equal to 50% of the gross revenue Island Scallops earns on account of the sale of Granscal's 2004, 2005 and 2006 brood year inventory currently in the water -- to be paid out as and when Island Scallops receives such sales.

Granscal operates approximately 100 acres of scallop farms, adding a total production capacity of 6.6 million scallops to ISL's current capacity. Located in Kanish Bay on Quadra Island on the South Coast of British Columbia, Canada, Granscal has been farming this lease in cooperation with ISL since 1992.

In addition, Les Rombough, owner and CEO of Granscal Sea Farms, will lead Island Scallops' efforts to develop partnerships with Cape Mudge First Nation Bands and potential farm sites on First Nation owned lands -- projects expected to provide new business opportunities to the Cape Mudge First Nation and to enhance Island Scallops' farming capacity and provide future joint venture revenues.

Robert Saunders, Chairman, CEO and President, Edgewater Foods International, said, "This important acquisition will provide substantial new farming capacity to Island Scallops. We have been working with Granscal and Les Rombough for 16 years. He has the same strong commitment to environmentally sustainable scallop farming that Island Scallops practices. Acquiring his farms adds to ISL's financial strength and ability to grow as the dominant producer of scallops in Canada. Mr. Rombough will lead the ongoing development at the Cape Mudge First Nations Bands. He is currently heading up the Inventory Program and is a great addition to the Island Scallops team."

About Edgewater Foods International, Inc.

Edgewater Foods International Inc., a Nevada Corporation, is the parent company of Island Scallops Ltd. ("ISL"), a Vancouver Island aquaculture company. Established in 1989, ISL has successfully operated a scallop farming and marine hatchery business for almost 20 years. ISL's facilities represent the largest private marine research hatchery and the first fully integrated shellfish producer in Canada.

Edgewater Foods is dedicated to the farming, processing and marketing of high quality, high value marine species: scallops and sablefish. Farmed Pacific scallops are unique to North America, and Edgewater is the predominant producer of live-farmed Pacific scallops.

The Pacific scallop is a hybrid developed by ISL through extensive research and development and proprietary hatchery technology that significantly increases growth yields while resisting disease. It is one of the largest scallops in the world, reaching about 15 cm in size and more than 1 pound in weight. The Company believes there is virtually no existing competition for producing this scallop. Edgewater is committed to rapidly expanding production and profits and financing aggressive growth, while maintaining quality and a healthy respect for a clean, sustainable marine environment.

Scallop farming is inherently a "green," environmentally sustainable industry. Scallops require clean water to grow and can only be harvested from clean waters. No chemicals or food are added to the environment, and cultured scallops are an organic food product. All scallop seed is produced in the Island Scallops' hatchery, so no native populations are exploited.

To learn more about Edgewater Foods International, Inc., please visit the company's Web site at http://www.edgewaterfoods.com. To receive email updates about the company and to be added to Edgewater Foods International Inc. investor lists, please sign up at www.CFSG1.com or contact Adam Brooks at abrooks@CFSG1.com.

Forward-Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

Pursuant to an April 1, 2008 contract, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides Edgewater Foods International, Inc. ("the Company") with consulting, business advisory, investor relations, public relations and corporate development services. Independent of CFSG1's receipt of cash compensation from the Company, CFSG1 may choose to purchase the Company's common stock and thereafter liquidate those securities at any time it deems appropriate to do so.

Contact Information

  • Company Contact:
    Edgewater Foods International Inc.
    Rob Saunders
    Chairman, CEO & President
    Tel: 250-757-9811
    Fax: 250-757-8370
    Website: http://www.edgewaterfoods.com

    Investor Relations:
    Stanley Wunderlich
    CEO
    Consulting for Strategic Growth I
    Tel: 1-800-625-2236
    Fax: 1-646-205-7771
    Email: Email Contact
    Web site: http://www.cfsg1.com

    Media Relations:
    Daniel Stepanek
    EVP
    CFSG1
    Tel: 1-646-205-7767
    Fax: 1-646-205-7771
    Email: Email Contact