Tassal share price drops 7% after listeria news report

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Listeria detected in Tasmanian salmon farmer’s fish.

According to the ABC radio show Mornings with Leon Compton, listeria was detected in a large containment Tassal salmon when tested at a Queensland, Australia, warehouse on February 11.

The bacteria was detected before it was sent to customers.

Although the outbreak occurred three days prior to the company’s half-year results release, management opted not to disclose the news to investors, the radio show reported.

Tassal sent a statement to Compton’s show saying: “We sell over 33,000 tonnes of product and 2 tonnes of product was not released.” Before adding that the detection of listeria demonstrates that “the system works”.

On Wednesday afternoon, the salmon and seafood producer’s shares on the ASX were down 7% to AUD 4.64.

The Motley Fool reports that in February, Tassal CEO Mark Ryan offloaded 200,000 shares through on-market trades. He received an average of AUD 4.822 per share or a total consideration AUD 964,400 and was left with a holding of 160,378 shares, the publication wrote.

Tassal advised that the sale was “undertaken to enable Mr. Ryan to balance his personal financial position and finalise a payment of income tax with respect to a previous issue of Tassal shares to him.”