Kraken Enters into Letter of Intent to Acquire Subsea Services Company
Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF), Canada’s Ocean Company, is pleased to announce that it has entered into a non-binding letter of intent (the “LOI”) dated April 8, 2021 in connection with the proposed acquisition of PanGeo Subsea Inc. (“PanGeo”) from Cahill Innovation Inc, a member of the Cahill Group of Companies, and Argentum Asset Management AS. Moya Cahill, a director of Kraken, is a shareholder of Cahill Innovation Inc, and she resigned as a director of Kraken prior to the approval and execution of the LOI in order to ensure proper governance and review of the transaction by a fully arm’s length board.
PanGeo is a private Canadian services company specializing in high resolution 3D acoustic imaging solutions for the sub-seabed. This proposed acquisition would accelerate Kraken’s transformation to a Robotics/Data as a Service model by increasing recurring service revenue and providing increased exposure to the non-defense market, including the offshore renewable energy market. Following completion of the proposed acquisition, Kraken would offer a holistic solution of world-leading technologies and services in subsea acoustic and optical imaging: Kraken’s suite of ultra-high resolution seabed 3D acoustic imaging sensors, autonomous robotics, and optical laser scanning paired with PanGeo’s suite of leading-edge sub-seabed high resolution 3D acoustic imaging systems.
Acquisition Rationale
The proposed acquisition would create a Canadian-headquartered global leader in ocean technology in the areas of subsea and sub-seabed imaging. If completed, Kraken would benefit from a number of synergies and advantages including:
- PanGeo would provide a broader foundation for Kraken to build a significant recurring revenue stream from a provision of reduced carbon emissions survey services.
- The acquisition will result in a more balanced blend of revenue (both defense and commercial) and product mix (product sales and services).
- PanGeo has an attractive diversified customer base consisting of leading companies in offshore renewables and offshore energy. Most of PanGeo’s offshore survey revenue is generated in Europe, with new opportunities emerging in the U.S. and Asia.
- PanGeo’s geotechnical and geophysical expertise, operational excellence and service delivery capabilities for the marine survey market are complementary to Kraken’s newly emerging service business. Kraken’s service capabilities consist of ultra-high-definition subsea imaging technologies that have been proven and well received in the defense market but are just as applicable to the commercial subsea survey and inspection markets, albeit delivered as a service (rather than a product sale).
- PanGeo’s technology augments Kraken’s to provide a more complete range of subsea surveying services. PanGeo’s Synthetic Aperture Sonar 3D seabed penetrating technology, which allows customers to understand the characteristics of the sub-seabed, will pair well with Kraken’s high ultra-high-definition seabed imaging technologies. This is essential to understanding the sub-seabed characteristics for infrastructure builds as well as maintenance and repair (buried pipelines, buried cables, buried UXOs, offshore wind turbine and offshore oil platform construction).
- Kraken will be able to take advantage of synergies to advance the development of technology on both platforms more quickly and more efficiently. The combined platforms will have a strong R&D feedback loop as new technologies are deployed, tested, and iterated in Kraken’s services business.
- Kraken does not expect significant integration risk as PanGeo’s management team is also headquartered, and has significant operations, in Newfoundland and Nova Scotia.
Kraken CEO Comments
Karl Kenny, Kraken President and CEO said:Commenting on the LOI, “Since plans for our OceanVision project started in 2018, we have been preparing our industry leading Synthetic Aperture Sonar and 3D underwater laser scanning technologies to be used in a Robotics/Data as a Service (RDaaS) business model as opposed to a product only strategy. While customers in the defense industry generally purchase this technology, in the commercial market customers are more focused on the provision of services by capable third-party companies. We believe that this potential acquisition would complement Kraken’s existing products and services with a stronger base of recurring revenues. As in the past, we expect PanGeo and Kraken will continue to work with many offshore service companies that prime these jobs and integrate specific scopes of work from various sub-contractors.”
PanGeo CEO Comments
Moya Cahill, PanGeo’s co-founder and CEO noted:“Notwithstanding that there is due diligence and negotiation for Kraken to complete this acquisition, this opportunity is very exciting for PanGeo as Kraken and PanGeo are world leaders in seabed and sub-seabed technology applications, respectively. Assuming closing of this transaction, I am confident that ocean industry customers will benefit from a broader suite of offerings from sensors, platforms, and service delivery solutions. PanGeo has a more than 10-year commercial track record of providing 3D acoustic imaging solutions to offshore renewable energy, offshore energy, and defense customers.”
Proposed Transaction Details
Although the LOI remains non-binding, it is anticipated that the purchase price will be between $18-$24 million, based on PanGeo’s performance over the 2-year period following the acquisition, to be paid by way of cash and stock over that period. Based on initial information provided by the target, the unaudited consolidated assets at December 31, 2020, of the business that Kraken is proposing to acquire were $11.7 million and net debt was $0.4 million. Unaudited trailing 12-month revenues for the period ended December 31, 2020, were $9.0 million and the corresponding EBITDA was a loss of $0.5 million. This was down from comparable 2019 revenues of $10.8 million and EBITDA of $2.3 million. The year-over-year decline was largely due to the impact of COVID on customer activity.
Completion of the acquisition is subject to, among other matters, the completion of due diligence, the negotiation of a definitive agreement providing for the transaction, and satisfaction of certain other conditions to be negotiated therein. Given the materiality to Kraken, it is not anticipated that any Kraken shareholder approval would be required to complete the proposed acquisition. Pursuant to the LOI, the parties have agreed to a 60-day exclusivity period during which they will complete their due diligence and negotiate exclusively with each other with a view to settling the terms of the transaction and the form of definitive agreement. Further details will be provided upon successful completion of the due diligence period and the signing of a definitive agreement. The LOI may be terminated by either party if a definitive agreement is not entered into by May 31, 2021. In addition to other conditions, the proposed acquisition remains subject to the approval of the TSX Venture Exchange.
For more information, please visit: www.krakenrobotics.com
RBR Ltd. releases the new RBRquartz³ Q|plus pressure logger
RBR Ltd. is pleased to announce the commercial release of the new RBRquartz³ Q|plus pressure logger to meet the demands for high-accuracy, long-term measurements of sea level, tidal, and wave dynamics by coastal oceanographers worldwide. At the heart of the RBRquartz³ Q|plus is an integrated Paroscientific Digiquartz® pressure sensor for best-in-class initial accuracy, resolution, and low-drift performance.
Learn more: https://bit.ly/3t0JO3Z
EdgeTech Introduces Two New 3400-OTS Lightweight Pole Mount Sub-Bottom Profiling Systems
EdgeTech, the leader in high resolution sonar imaging systems and underwater technology, has recently introduced two new Pole Mount Sub-Bottom Profilers to the family of 3400 Sub-Bottom Profiling Systems.
Building on the long running success of the EdgeTech sub-bottom profiler product line, the new Ultra-Lightweight Shallow Water and Lightweight Shallow Water over-the-side pole mount 3400-OTS systems provide users many unique enhancements to current sub-bottom profiler systems. The 3400-OTS transmits wide band Frequency Modulated (FM) pulses utilizing EdgeTech’s proprietary Full Spectrum CHIRP technology. The systems use flat multi-channel hydrophone arrays to generate high resolution images of the sub-bottom stratigraphy in oceans, lakes, and rivers and provides excellent penetration in various bottom types. The 3400-OTS receiver array is segmented for standard sub-bottom profiling operations or “pipeline” mode for optimal location and imaging of buried pipelines or cables. The system offers real-time reflection coefficient measurements. This unique function of the EdgeTech sub-bottom profiler system allows users the ability to collect complex ‘analytic’ data using linear system architecture to measure sediment reflection and analyze sediment type determination. Additionally, the system has discrete transmit and receive channels allowing for continuous data collection resulting in a high ping rate particularly important for construction and pipeline surveys.
The lightweight 3400-OTS systems are ideal for shallow water surveys using small boats of
opportunity. The sub-bottom profiling systems come as a complete package including EdgeTech’s DISCOVER sub-bottom acquisition & processing software. The 3400-OTS can also be interfaced to 3rd party software.
For more information please visit: www.edgetech.com.
Extensive underwater camera network to monitor and protect ocean wildlife and blue economies
The ocean wildlife and diverse ecosystems of the UK Overseas Territories (UKOTs) will soon be more visible than ever thanks to pioneering work to establish a major network of underwater camera deployments.
Funded as part of the UK Government Blue Belt programme, scientists from Cefas, the University of Western Australia and partners in the UKOTs are working with Blue Abacus, in a world first to supply and analyse the data collected from 66 non-intrusive stereo-Baited Remote Underwater Video Systems (BRUVS), which will be deployed in open ocean and coastal habitats.
Together these BRUVS will form the Global Ocean Wildlife Analysis Network, which will provide information on ocean biodiversity and ecosystems found in the vast maritime and coastal areas of the UKOTs in the Atlantic, Indian, Pacific and Southern Ocean.
The UKOTs involved in the project are: Anguilla, Ascension Island, British Antarctic Territory, British Indian Ocean Territory, British Virgin Islands, Cayman Islands, Montserrat, Pitcairn, St Helena and Tristan da Cunha.
BRUVS will enable researchers to see below the surface and provide a benchmark of scientific understanding of the marine species within their maritime area, allowing the UKOTs to take more informed decisions about protecting and managing these diverse ecosystems.
The data the cameras collect will provide a standard measure of the status of both open ocean and reef species, letting scientists and the UKOTs set benchmarks for diversity and abundances. This will form valuable information on the many migratory species of open ocean and coastal reef fish species, assist in the management of data-poor fisheries and also improve our understanding of the functioning of pelagic and benthic ecosystems.
Co-founder of Blue Abacus and Professor at the University of Western Australia, Jessica Meeuwig said:
“The world’s tunas, sharks and large reef fish continue to decline in numbers and this trend must be reversed. This programme will give decision makers the evidence they need to act decisively in support of their blue economies.
“We are delighted that the UK Government and Overseas Territories support the drive for increased knowledge as we rebuild our oceans. Our refinements to conventional underwater cameras are what makes possible the rollout of this programme over four ocean basins, the largest single such government-supported initiative globally.
“We look forward to working with the communities in the Overseas Territories, building on their local knowledge and experience.”
The Global Ocean Wildlife Analysis Network of underwater stereo-baited cameras supports ongoing work amongst the UKOTs, many of which are part of the UK Government Blue Belt Programme, which now covers more than 4 million square kilometres of ocean.
Cefas project lead, Dr Paul Whomersley said:
“The UKOTs are taking a global lead on protecting their oceans and the wildlife and livelihoods that it supports.
“Global Ocean Wildlife Analysis Network will provide UKOTs with a world-first network of stereo-baited remote underwater video systems which will enable us all to better understand the biodiversity, functioning and connectivity of these ocean areas, while providing valuable and necessary data to inform and develop UKOTs marine management and protection strategies.”
The project has received support from UK ministers and UKOT representatives.
Timothy Austin, Deputy Director, Research and Assessment, Cayman Islands Department of Environment said:
“The Cayman Islands Department of Environment is very excited at the opportunity to participate in the Global Ocean Wildlife Analysis Network that will bring the BRUV network into the Caribbean region for the first time.
“Nearshore benthic BRUVs have been an important research tool for informing marine species and protected area management in the Cayman Islands. The opportunity to take this technology further offshore will greatly enhance the Cayman Islands’ ability to implement meaningful and effective conservation regimes for this data limited, poorly understood, but crucially important ecosystem.”
Diane Baum, Director of Conservation and Fisheries, Ascension Island Government said:
“Ascension is committed to safeguarding its vast 445,000km2 Marine Protected Area, but we recognise how challenging this will be. The support of the Blue Belt Programme and the opportunity to join Global Ocean Wildlife Analysis Network will help us to meet that challenge.
“Our previous use of BRUVs has given us an insight into the amazing diversity of our open ocean ecosystems and enabled us to identify hotspots of biodiversity that need special protection. Being part of this initiative will provide Ascension with the information we need to take good local management decisions.
“It will also strengthen the network of UK Overseas Territories that is driving improvements in marine conservation at a global scale. Ascension aspires to be the best MPA in the world by basing its management on sound evidence, adopting new technologies and seeking inspirational international partners; this project achieves all three.”
Dr Simon Morley, British Antarctic Survey, representing British Antarctic Territory said:
“Science is constantly striving to find innovative solutions to monitor the marine environment and these baited cameras offer a solution to help us better understand mid-water communities close to shore along the Antarctic Peninsula. This global network, gives us an excellent opportunity to compare different oceans and understanding the impact of our changing climate."
Over the next few months, complete sets of carbon-fibre stereo-BRUVS and associated equipment will be delivered to the UK Overseas Territories.
This initiative builds on progress to date through the Blue Belt programme to improve our understanding of the marine environment of the UKOTs, and to ensure these diverse ecosystems are protected and managed for future generations. Through the programme, the UKOTs have put in place large-scale marine protection and management measures which cover an area of over 4 million square kilometres.
For more information visit www.cefas.co.uk.
Transmark Subsea new representative for Boxfish Remotely Operated Vehicles in Europe
Transmark Subsea becomes the European distributor of ROV systems from Boxfish Research, New Zealand, expanding their offering of high-tech subsea solutions to help their customers operations stay relevant and effective.
Boxfish Research designs and manufactures industry leading, actively stabilised, ultra-high definition underwater ROVs and 360 cameras for submerged asset inspection, defence & security, marine science, energy, aquaculture, police and search & rescue, VR/ AR and cinematography. A tetherless, autonomous option is pending – stay tuned!
Distribution of Boxfish Research ROV systems complements Transmark Subsea’s diverse range of underwater solutions which include WiSub pinless connectors, DeepSea Power& Light cameras and lighting, as well as the company’s in-house range of subsea cabling and termination solutions.
“Boxfish Research is excited to be able to better serve our clients in Europe and expand our regional capabilities in partnership with Transmark Subsea,” said Craig Anderson, Co-Founder of Boxfish Research.
“Transmark Subsea is proud to become the European representative for this reputable product line”, said Transmark Subsea’s Managing Director Leif Hugo Arntsen. “Boxfish’s superior product range aligns very well with our development of Subsea resident solutions and swappable tools.”
For more information, please visit: www.transmark-subsea.com
High Speed Transfers future proofs fleet with triple order from BAR Technologies and Chartwell Marine
HST places order for two BARTech 30 CTVs and an additional Chartwell 24 in high-tech boost for offshore wind
High Speed Transfers (HST), an innovative crew transfer vessel (CTV) operator that supports the offshore wind energy and oil and gas industries worldwide, has confirmed its order of two BARTech 30 CTVs from innovative simulation-driven marine engineering consultancy, BAR Technologies, and an additional hybrid Chartwell 24, with BAR Technologies’ Foil Optimised Stability System (FOSS), from Chartwell Marine, a pioneer in next-generation vessel design. The vessels will be built at Diverse Marine, on the Isle of Wight, UK.
As offshore wind technology continues to evolve, and projects are developed further out to sea, the operational profiles that wind farm operators require have become diversified. Versatile fleets have become increasingly prized in the race to scale the sector in new markets. Equally, as decarbonising the vessel supply chain becomes a key imperative for wind farm owners and operators, BAR Technologies’ CTV is set to provide HST with fuel – and therefore emissions – savings of up to 30%.
Additionally, to ensure that new projects can be safely and efficiently maintained, vessel designers have risen to the challenge to deliver the next wave of innovation in offshore wind’s maritime supply chain – without sacrificing the proven characteristics that have underpinned the sector’s success to date. The two BARTech 30 vessels will offer HST the flexibility to operate year-round, benefiting from a significant reduction in vertical acceleration to ensure optimal performance.
HST’s order will ensure that the business is able to continue to provide the highest standards of comfort for passengers during voyages to wind farms even in regions that typically see higher sea states such as the US. The proven Chartwell 24 vessel formula will be further enhanced with BAR Technologies’ FOSS, offering improvements in seakeeping and boosting efficiency.
Crucially, the vessels will all have the same layout of the console, seating and bridge, adhering to HST’s strict safety specifications and ensuring operational familiarity for crew and passengers. All three vessels will be equipped with Reygar’s BareFLEET technology to give HST a granular view of fuel use and operational efficiency, delivering savings to clients and using data to demonstrate the concrete benefits of the vessel platforms to wind farm operations.
Tom Nevin, CEO, High Speed Transfers, said: “Offshore wind owners and operators have shown a real appetite for efficient, low-carbon vessel platforms. It is exciting to work with vessel designers such as BAR Technologies and Chartwell Marine who understand what the industry needs and have the expertise to deliver next-generation designs without overcomplicating the vessels. BAR Technologies’ FOSS is fast becoming a ‘must have’ and we are keen to demonstrate the capabilities of our new vessels to the market.”
John Cooper, CEO, BAR Technologies, said: “Offshore wind is about to enter a golden era, but the sector needs to be ready for rapid growth – and this means building out a solid global fleet. We are proud to support forward looking vessel operators such as HST as they tackle the challenges of future offshore wind operations head-on by adopting the latest innovations in vessel design.”
Andy Page, Managing Director, Chartwell Marine, said: “We looked at a broad suite of propulsion options for the vessel before deciding on the configuration that suits HST’s needs best, as we understand how important it is to maintain the core HST identity while continuing to innovate. By opting for a full complement of BARTech 30 and Chartwell 24 CTVs, HST has continued to show leadership in offshore wind by taking the next step in performance.”
John concluded: “Decarbonisation is the next great challenge for the offshore wind sector as it continues to expand into new markets. A crucial element of net-zero in offshore wind is reducing emissions in its maritime supply chain, using hydrodynamic expertise to deliver vessel platforms designed to reduce energy waste, opening the door to battery-electric drivetrains and cutting the carbon footprint of existing fuels.”
For more information, please visit: www.hst-marine.com, www.bartechnologies.uk or www.chartwellmarine.com
Sonardyne’s forward looking sonar now supported in NAUDEQ’s ECDIS
Marine technology company Sonardyne has announced its Vigilant Forward Looking Sonar (FLS) is now available as an external sensor interface for NAUDEQ’s electronic chart display and information system (EDCIS) MASTER-DEQ.
Sonardyne’s Vigilant FLS shows captains and crews where it is safe to navigate and alerts them to potential underwater dangers that could result in a collision or grounding. It can be used as standalone system or overlaid into third party ECDIS systems such as MASTER-DEQ. This means NAUDEQ’s naval, merchant and fishing vessel users can now take advantage of this valuable aid to navigation through Vigilant’s enhanced reality imaging overlaid on their MASTER-DEQ bridge display.
Using the sonar data from Vigilant, NAUDEQ’s MASTER-DEQ builds and displays cut profiles and 3D maps of the seabed, taking into consideration the tide level. Through MASTER-DEQ, mariners can also view cut profiles looking at their course over ground, obstacle avoidance coinciding with heading and a profile in a user-defined direction. By superimposing reliable Vigilant data on the seabed topography, built using NAUDEQ’s technology and using ENC S-57 data, a comparative analysis can also be run. Any discrepancies between the chart data and the real-world returns from Vigilant are then clear to see.
For more information visit: www.sonardyne.com
Amphibious vehicle auto-pilot for British Army
The team at Dynautics recently worked closely with Ultrabeam Hydrographic on a MoD Defence and Security Accelerator (DASA) funded project, ‘Map the Gap’, run on behalf of the Defence Science and Technology Laboratory (Dstl). Ultrabeam, in conjunction with Foundry Cube Ltd (a subsidiary of Ultrabeam Limited), was awarded one of five contracts to develop a remotely-operated reconnaissance aid to help British Army troops safely and stealthily advance across water obstacles in enemy territory.
Crossing challenge
Currently, the only way of identifying suitable water crossing points is to send Royal Engineer reconnaissance troops to survey both banks of the river – exposing them to danger which also risks compromising the operation by signalling interest in that location to the enemy. The aim therefore is to ultimately remove personnel from these dangerous tasks with a remote system that allows more crossing locations to be surveyed, increasing the choices available to commanders and giving an opportunity to surprise the enemy.
Tailored solution
Ultrabeam’s goal was to demonstrate the capabilities of their autonomous and amphibious hydrographic survey vehicle – the Argocat – in meeting the challenges of this crucial work.
As a strategic partner, Dynautics is sharply focused on the ultimate goals of its customers and the team immediately started work on honing autopilot specifications to support the Ultrabeam team in achieving their mission. Dynautics’ key task was to develop its MicroSPECTRE autopilot hardware to drive the Argocat. This included the consideration of: joystick-based remote operation; the ability to follow a straight-line heading or pre-planned mission tracks; steering, heading control and track keeping both for land and waterborne operations and collision avoidance measures.
“We thrive on new integration challenges to existing systems. The team had never attempted to control a vehicle both on land and in the water before, but we were able to adapt our SPECTRE Autopilot quickly and effectively. It goes to show really how robust and capable our solutions are.”
Henry Robinson, Dynautics CEO
Successful field trials
Dynautics’ autopilot products enable tight heading and speed controls, track following (including event management at waypoints), vehicle following, collision avoidance, attitude and depth control as well as hovering and dynamic positioning. Traditionally used for marine vessels, such as uncrewed surface vessels (USVs), adapting MicroSPECTRE for an amphibious vehicle was a new challenge that the team rose to, with successful field trials being completed in December 2020.
Moving forward
The second phase of the Map the Gap project has now been launched and Dynautics continues to work closely and collaboratively with Ultrabeam Hydrographic. More news coming soon!
Watch the video for more info on the Argocat and phase 1 trials:
For more information visit: www.dynautics.com/2021/02/26/amphibious-vehicle-auto-pilot-for-british-army
KONGSBERG secures contract to deliver full solution for ecosystem monitoring using autonomous vessels
Kongsberg Maritime is pleased to report that it has reached an agreement to supply Norway’s Institute of Marine Research (IMR) with four autonomous vessels. The scope of supply includes two Kongsberg Maritime Sounder USVs (Unmanned Surface Vehicles) and two KONGSBERG AUVs (Autonomous Underwater Vehicles), which will form the practical basis of the institute’s long-term strategy to develop the monitoring and management of marine environments and resources.
The four autonomous vessels will be equipped with KONGSBERG’s new Blue Insight, a cloud-based ecosystem designed to facilitate remote instrument operation, data visualisation and smart management of oceanographic and meteorological data. Infrastructure for automated classification of fish through machine learning is a key feature of the delivery, consolidating the long-running partnership between KONGSBERG and the IMR towards the goal of implementing seagoing drones for ecosystem management.
The KONGSBERG AUVs are scheduled for delivery this year, with the USVs following in the late summer/early autumn of 2022. The AUVs are depth-rated to 1,500m and are equipped with a powerful payload for environmental monitoring and seabed mapping. The IMR USVs will be equipped with a full EK80 wideband system accommodating ADCP functionality, similar to the setup on their existing research vessels. Importantly, control and navigation of both AUVs and the Sounder USVs can be handled just by a single interface. The comprehensive overview provided by this fleet management capability enables interoperability between all assets and reduces in-mission complexity.
This integrated autonomous survey solution is the first to merge AUV and USV operations, and the investment testifies both to the IMR’s future- and sustainability-focused ambitions and to its faith in KONGSBERG’s ability to supply the most advanced autonomous craft.
As one of the largest marine research institutes in Europe, the IMR is committed to promoting sustainable practices at sea, and digitalisation is a cornerstone of this policy. Stimulus programmes introduced last year to facilitate remote working during and after the pandemic have accelerated the institute’s wholesale adoption of high-tech digital solutions, supported by a substantial digital investment by Norway’s Ministry of Trade, Industry and Fisheries, in addition to external research grants.
“As we embark on the next stage in this project, we are happy to do so alongside our trusted and long-term partner Kongsberg Maritime,” says the IMR’s CEO, Sissel Rogne. “We are seeing a wide range of changes in our coastal and ocean ecosystems – and these changes happen fast. In response to this, we must streamline and increase our management efforts. To obtain this we need innovative and reliable partners, and the cooperation with Kongsberg Maritime is therefore vital to us. Their USVs and AUVs will initially work alongside our traditional research vessels in an ‘armada strategy,’ but will subsequently operate more independently as we expand our plans.”
“We’re very pleased to have secured this contract with the IMR,” adds Tonny Algrøy, Sales Director, Ocean Science, Kongsberg Maritime. “This delivery builds upon decades of collaborative work with the IMR to create innovative solutions for ocean ecosystem monitoring, and the addition of smart platforms plus a new E-infrastructure solution is a logical next step in this shared history.”
For more information visit: www.kongsberg.com/maritime