Ribe, Denmark-based Nordic Aqua Partners has raised NOK 300 million (USD 29.3 million, EUR 27.4 million) through a private placement of new shares in the company initiated on 7 February, 2023.
Kontrari AS, owned by shipping-industry leader Frode Teigen – who is also an Akva Group and Egersund Group board member and chair of Kontrazi, as well as a major shareholder in land-based farmer Nordic Halibut – subscribed for 2.75 million shares at a cost of NOK 179 million (USD 17.5 million, EUR 16.3 million). Israel Corporation, based in Tamra, Israel, and owned by another shipping magnate, Idan Ofer, purchased 1.38 million shares for NOK 89 million (USD 8.7 million, EUR 8.1 million). The remainder of the allocation was purchased at a per-share price of NOK 65 (USD 6.36, EUR 5.95).
The proceeds will be used to accelerate progress on Nordic Aqua Partners’ planned recirculating aquaculture system (RAS) Atlantic salmon farm in Ningbo, China. Nordic Aqua Partners previously raised EUR 55.1 million (USD 58.8 million) in 2020 for the development in a private placement that was substantially oversubscribed that attracted strong interest from Norwegian and international investors.
The first phase of the farm’s development will give it a production capacity of 4,000 metric tons (MT). Nordic Aqua Partners said it eventually hopes to scale up to annual production of 20,000 MT head-on, gutted Atlantic salmon at the farm.
Construction of the farm commenced in Q1 2021, and Nordic Aqua Partners said it expects to complete its first harvest in Q1 2024. With the new funding, Nordic Aqua Partners said it will now advance construction of the second stage of the project to Q4 2023, up from Q2 2024.
“Start-up for capacity expansion of the hatchery facilities for stage 3 will also be advanced, with finalization now planned for Q4 2023,” it said. “Timeline for stage 3 growth on facilities will be decided at a later stage and will depend on necessary additional funding being secured, including debt and equity.”
The company estimated its total remaining project cost to complete the first and second stages of the farm at NOK 725 million (USD 70.9 million, EUR 66.4 million), but it said secured liquidity and cash flow from stage one would cover that amount.
“We are comfortable with the financial development of the company, and ongoing projects are developing according to plan and budget. Biological performance in the first phase of production has been solid, and we are on time for first harvest in Q1 2024,” Nordic Aqua Partners Chairman Ragnar Joensen said. “With this capital raise, we have secured necessary funding to go forward with stage 2 of the project. We are very pleased with getting new long-term strategic shareholders onboard, supporting the company in becoming the first salmon farming company to deliver live and locally farmed Atlantic salmon directly to the Chinese consumer.”
Image courtesy of Nordic Aqua Partners
