Andfjord Salmon opens private investment funding round

Andfjord Salmon, which is developing a concession to farm 10,000 metric tons (MT) of salmon in an innovative shore-based facility located on the island of Andøya, Norway, 300 miles inside the Arctic circle, is raising funds through a contemplated private placement, followed by listing on the Merkur Market.  

The funds will be invested in the company’s initial salmon farming facility at Kvalnes, which is on track to receive its first smolts in the summer of 2020, with the first harvest expected during 2021. The investment will also be used to further expansion plans to other sites, in line with the company’s road map, which signposts a total license capacity of 70,000 MT per year.

Adfjord has engaged investment bank ABG Sundal Collier ASA as sole bookrunner and manager of the deal, which aims to raise NOK 120 million (USD 12.8 million, EUR 11.2 million). The price per share in the private placement has been set at NOK 40.00 (USD 4.27, EUR 3.72) and the minimum application and allocation amount has been set at the NOK equivalent of EUR 100,000 (USD 114,000).

The bookbuilding period started on Wednesday, 10 June, and will close on Thursday, 11 June, but will be extended if required.

A private placement is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion. It allows for shares to be offered to pre-selected individual and corporate investors, rather than being sold on the open market. 

According to ABG Sundial Collier, existing shareholders in Andfjord Salmon have already committed to taking NOK 20 million (USD 2.2 million, EUR 1.9 million). In addition, DNB Asset Management and Nordea Investment Management have committed to NOK 20 million worth of shares each, and Toluma Norden AS has undertaken to subscribe to NOK 10 (USD 1.10, EUR 0.93) million worth of shares.

Once the private placement is completed, Andfjord Salmon will list the company shares on the Merkur Market, subject to approval from the Oslo Stock Exchange. The first day of trading is expected to be in the week commencing on 22 June, 2020.

The Merkur Market, which is operated by the Oslo Børs, the Oslo Stock Exchange, opened four years ago as an alternative marketplace for companies that greater visibility and liquidity for their shares, with the opportunity of electronic share trading.

In April, Andfjord Salmon appointed a new CEO, Martin Rasmussen, who took over from founder Roy Bernt Pettersen, whose vision and ambition has spearheaded the development thus far. Pettersen, now chairman, and Rasmussen, are now working closely together to achieve that vision.

Photo courtesy of Andfjord Salmon