Atlantic Sapphire secures increased loan limit

Atlantic Sapphire operates a land-based salmon farm with RAS (recirculating aquaculture system) technology, and is looking to finance the next phase of growth.

Just over a month ago and on the back of a rapidly improving performance, the company raised US $35m (£26m) in a convertible loan, thanks to a number of Norwegian and US investors. Among them was the north Norwegian salmon company Nordlaks.

Now, subject to approval by an extraordinary general meeting,  it has decided that the loan be set at US $59,246,066 (£44m).

In a message on the Oslo Stock Exchange, Atlantic Sapphire said: “This amount includes capitalisations for capitalization of; (i) a previously granted bridge loan and associated fees and interest; (ii) a previously granted convertible loan of USD 20 million and incurred interest thereunder, and (iii) underwriting fee payable in connection with the Convertible Loan.

“Further, the Board of Directors has resolved to withdraw the proposal for issuance of independent subscription right that was put on the agenda.”

It added: “The issuance of instruments in the contemplated Long-Term Incentive Plan will instead be based on Board authorizations. However, the Board of Directors may propose to a later general meeting to issue independent subscription rights to cover instruments in the Long-Term Incentive Plan.”

A few weeks ago, Atlantic Sapphire reported that it was making good progress after a difficult period, citing a near first half doubling of revenues to $21.5m ( almost £16m). The company says it is “transitioning to scalable growth”.