Salmon Evolution contemplating USD 47 million private placement

Salmon Evolution announced on the Oslo Børs on 18 April it is contemplating a private placement of new shares in the company to raise gross proceeds of NOK 500 million (USD 47 million, EUR 43 million).

The latest private placement comes soon after the company finalized a binding loan agreement with DNB and Nordea for a green debt financing package worth NOK 1.55 billion (USD 150 million, EUR 138 million). Salmon Evolution is engaging both DNB and Nordea as joint global coordinators and joint bookrunners in the newest private placement.

According to the company, net proceeds from the placement will be used to fund parts of its salmon farming facility at Indre Harøy and for “general corporate purposes.” Multiple primary insiders – CCO Odd Frode Roaldsnes, CFO Trond Vadse Veibust, and Board Member Anne Breiby, have all “indicated to apply” for offer shares.

The company announced it is contemplating a new private placement days after an 11 April, 2023 announcement its production ramp up is proceeding according to plan. The company said it recorded “all-time high biomass production” in March, gaining 320 metric tons (MT) in biomass for the month. The company’s standing biomass as of 31 March was “almost” 1,500 MT live weight, a doubling from the 733 MT it had on 31 December 2022. 

The positive biomass growth numbers reinforce the company’s assertion in its 2022 report that the proprietary flowthrough technology it is using for its salmon farm – being built in an abandoned quarry on the west coast of Norway – has achieved its proof of concept. The company expects to produce 50,000 MT of Atlantic salmon annually at its land-based farm, and the first phase of the farm – eight out of 12 tanks in total – came into operation in March 2022 and the company harvested its first fish in November 2022.

The company said it expects to harvest batch 2 of its salmon in early May, with the entire batch to be fully harvested out by June. So far, mortality levels have remained relatively low with 2.2 percent accumulated mortality, the company said. It also announced Batch 2, 3, and 4 were successfully sourted and graded, and that batch 5 was stocked in February – with batch 6 and 7 with planned stockings in Q2 2023. 

Photo courtesy of Salmon Evolution