Andfjord raises more capital and enters partnership to deliver post-smolts

The north Norway-based Andfjord, which suffered major issues with construction costs towards the end of last year, said in an Oslo Stock Exchange statement this week that it has teamed up with Eidsfjord Sjøfarm in a partnership that will involve substantial deliveries of post-smolt from Andfjord Salmon to Eidsfjord Sjøfarm in 2026 and 2027.

The company said the deal also secures smolt sourcing for Andfjord Salmon and a processing agreement, with Holmøy Havbruk, that secures harvest capacity when required.

As part of the strategic partnership, Eidsfjord Sjøfarm has committed to invest NOK 100 million (£8m) in Andfjord Salmon through a private placement of new shares.

“The net proceeds from the private placement will be used for advancement of the company’s construction at Kvalnes to reach production capacity of 17,000 tons (HOG + post-smolt) and for general corporate purposes,” the statement added.

The company operates a proprietary flow-through system at Kvalnes and aims to reach a production capacity of 40,000 tons, eventually.

Andfjord Salmon has also engaged Arctic Securities, DNB Carnegie, Nordea and SB1 Markets as lead managers in connection with a private placement of new shares to raise gross proceeds of at least NOK 300 million. The subscription price is set at NOK 27.50 per share.

Andfjord’s shares traded for NOK 28.60 at the stock exchange’s closing time on Monday. 

The net proceeds from the issue will be used to continue the company’s development at Kvalnes to reach a production capacity of 17,000 tonnes (HOG + post-smolt), as well as general company purposes.

Andfjord Salmon came through a difficult period last December when it dismissed its former contractor and engaged a new company.