Kaldvik and Kingfish Company in Oslo Stock Exchange rule breaches

The two companies concerned are Netherlands-based yellowtail farmer The Kingfish Company and the troubled Icelandic salmon farmer Kaldvik.

 

In the case of the Kingfish Company, Euronext Oslo Børs said the decision was taken due to the company’s failure to comply with a Euronext Growth Oslo Rule Book section regarding disclosure of the annual report.

 

The Kingfish Company has recently presented a strategic financial restructuring which it said upon completion will result in a simplified capital structure and a significant reduction of net debt, and bring in further liquidity for growth.

 

A similar reason around disclosure was given for the decision to include Iceland based Kaldvik, which is backed by the Måsøval family and may be sold this year along with the Norwegian based Måsøval aquaculture business.

 

On Monday, Kaldvik reported a £10m drop in its operating income and a loss of £23m.

 

Being placed in the Oslo Penalty Bench is a serious matter because it publicly flags that a company has violated exchange rules. It is a special compartment in which the securities of issuers that do not comply with the Rules are placed.

 

This sometimes triggers a drop in investor confidence, decreased market visibility, and a negative impact on liquidity as some institutional funds are barred from holding stock in non-compliant companies.

 

Euronext Oslo Børs will remove securities from the Penalty Bench, and allocate the securities to their normal compartment, when the issuer has corrected the violation of rules.