Legal: There’s some bad abalone between Ocean Grown and 888
Ocean Grown Abalone (ASX:OGA) is having a bit of a legal tiff with its abalone supplier 888 Abalone.
888 Abalone has accused Ocean Grown of breaching a supply agreement.
Ocean Grown said it had been handed a letter from 888 Abalone’s lawyers alleging that looking at options for the future development of an onshore abalone hatchery and grow-out facility was in breach of their supply deal.
The company revealed in late February that it was exploring opportunities to increase its productivity.
Ocean Grown said it had found a patch of land near Esperance in Western Australia where it could potentially build the facility.
The company reckons 888 Abalone’s allegations are “without foundation” based on preliminary legal advice it has received.
Ocean Grown said it will continue to comply with the supply agreement with 888 Abalone, but that it will also still undertake a feasibility study to assess the development of an abalone hatchery.
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