Mera currently grows algae for use in nutritional supplements. The research will be done with San Diego, Calif.-based Rincon at Mera's 4-acre facility at the Natural Energy Laboratory of Hawaii Authority in Kailua-Kona.

Mera shares were unchanged at 2.5 cents in late afternoon trading on the Nasdaq Over-the-Counter Bulletin Board.

Fitch confirms AA rating for Honolulu bonds

Fitch, a bond rating company, today assigned an AA rating to $328.5 million worth of general obligation bonds to be sold by the city and county of Honolulu on or about May 18. The bonds will be sold through a syndicate led by UBS Financial Services Inc.

Fitch also affirmed its AA rating on $1.59 billion in outstanding city bonds. Fitch said, "Honolulu's credit strength rests in the sound fundamentals of its tourism-based economy, good financial operations and reserves, low debt burden, and strong fiscal management. The city's tourism base has adapted to a shift to more domestic-based visitors."

Barnwell profit declines

Honolulu-based oil exploration firm and real-estate development firm Barnwell Industries Inc. reported lower first-quarter earnings in part because of lower real-estate sales on the Big Island.

The company posted net income of $910,000, or 32 cents per diluted share, down 73 percent from about $3.4 million, or $1.33 per share, in the first three months of last year.

Oil and natural gas revenues were up 27 percent in the first quarter primarily because of higher prices, but Barnwell's earnings a year earlier were boosted by reduced corporate income tax rates in Canada where it drills for energy sources, as well as higher revenue from the sale of residential lots at the Four Seasons Resort Hualalai at Ka'upulehu.