The provincial government says it will help Souris Harbour Authority Inc. buy the facility with a $2-million loan from Finance PEI and a $150,000 grant through the Island Community Fund.
The former Ocean Choice International plant will reopen as a cold storage, bioscience and seafood processing facility by next summer.
The harbour authority is a non-profit corporation that owns, operates and promotes the development of the Port of Souris.
The province announced Tuesday that it reached an out-of-court settlement to recover $1.5 million from a loan given to Ocean Choice.
The provincial government launched a lawsuit in June 2011 in a bid to recover $9.75 million of an unsecured loan that was still outstanding when the plant closed.