SOURCE: HQ Sustainable Maritime Industries, Inc.

December 18, 2006 23:43 ET

HQ Sustainable Maritime Industries Files SB-2 Registration

Offering of 4.2 Million Shares, Adjusted for a 20-for-1 Reverse Split, Is Targeted Primarily to Completing New Large-Scale Organic Feed Mill and Processing Plant

SEATTLE, WA -- (MARKET WIRE) -- December 18, 2006 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTCBB: HQSM), a leader in toxin-free integrated aquaculture and aquatic product processing, today filed an SB-2 registration statement for an offering of 4.2 million shares of the Company's common stock, adjusted for a 20-for-1 reverse split, at a price to be determined.

As described in the registration statement, the intended uses of the proceeds are as follows: (1) approximately $12 million to construct a new large-scale organic feed mill and a processing plant, which is located in Hainan Province, China; (2) repay the balance of the convertible secured promissory note outstanding, and (3) the remaining proceeds to be used for general corporate purposes, including working capital.

HQ produces toxin-free tilapia products and has developed a farming system that avoids the use of antibiotics, hormones and other potentially toxic chemicals. HQ also produces marine bio and healthcare products addressing large markets in China. The processing plant for these products also produces tilapia feed additives.

The underwriting of the offering is being led by Ladenburg Thalmann & Co. Inc. and Roth Capital Partners.

A registration statement relating to these shares of common stock has been filed with the Securities and Exchange Commission but has not yet become effective. These shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, HQSM common stock or any other securities, nor shall there be any sale of securities mentioned in this press release in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

A copy of the prospectus relating to the offered securities may be obtained, when available, from either Ladenburg Thalmann & Co. Inc., 153 East 53rd Street, 49th Floor, New York, New York 10022 or Roth Capital Partners, 24 Corporate Plaza Drive, Newport Beach, California 92660.

About HQ Sustainable Maritime Industries, Inc.

HQ Sustainable Maritime Industries, Inc. 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 practices cooperative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. The company is dedicated to sustainable toxin-free methods giving its customers the purest products possible. 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. HQ owns a nutraceuticals and health products company, which is HACCP certified, and produces and sells products subject to stringent laboratory tests certified by the China Ministry of Health. HQ also produces nutraceuticals, which enrich feed used by HQ's cooperative aquaculture operations. In addition to headquarters in Seattle HQ has operational offices based in Haikou, Hainan. (

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 of 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 under "Search for Company Filings."

Consulting For Strategic Growth I, Ltd. ("CFSG") provides HQ Sustainable Maritime Industries, Inc. (HQ) with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG receives a fixed monthly fee for the duration of the agreement. Independent of CFSG's receipt of cash compensation from HQ, CFSG may choose to purchase the common stock of the company and thereafter sell those shares at any time it deems appropriate to do so.

Contact Information

  • Contacts:

    Norbert Sporns
    Chief Executive Officer
    HQ Sustainable Maritime Industries, Inc.
    Tel: 206-621-9888
    Fax: 206-621-0318
    Email Contact

    Stanley Wunderlich
    Chief Executive Officer
    Consulting for Strategic Growth
    Tel: 1-800-625-2236
    Fax: 212-337-8089
    Email Contact

    Daniel Stepanek
    Media Relations
    Consulting for Strategic Growth 1
    Tel: 212-896-1202
    Fax: 212-697-0910
    Email Contact