Atlantic Sapphire share issue raises $65m

Atlantic Sapphire has successfully raised a further US $65 million (NOK 702m/ £52.7m ) with a new share issue, the Florida land-based salmon farmer has announced.

The move involves the private placement of 501,428,571 new shares, at a price per new share of NOK 1.40.

The Oslo Stock Market announcement said: “The private placement was carried out on the basis of an accelerated book building process managed by Arctic Securities AS and DNB Markets, a part of DNB Bank ASA as joint book runners after close of markets on 19 September 2023.

“The net proceeds from the private placement will be used to reach an estimated EBITDA break-even for Phase 1 during H1 2024, with a cash buffer. “

Last month Atlantic Sapphire warned of a lower than expected biomass during the current July to September quarter elevated farming temperatures and their impact on water quality.

Yesterday’s announcement said: “The company will deploy rental chillers estimated to bring water temperatures back to budgeted levels.”

It also said that depending on satisfactory system performance it would seek to “…eliminate chiller rental costs by utilising excess buffer towards finalising investment in the new Phase 1 & 2 chiller plant.”

The private placement is divided into two tranches. These will be will be settled on a delivery versus payment (“DVP”) basis facilitated through a pre-funding agreement entered into between the company and the managers.

The first tranche consists of 55,000,000 Offer Shares while the second tranche will consist of 446,428,571 Offer Shares.

Atlantic Sapphire completed the first commercial harvest of its pioneering Bluehouse (land-raised) salmon in the US in September 2020.

The company is currently constructing its Phase 2 expansion, to bring production up to 25,000 tonnes. The long term target is 220,000 tonnes.


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