Norcod raises funds to increase cod biomass
Norwegian cod farming company Norcod has just raised NOK 105 million (USD 11.34 million, EUR 10.42 million) in a private placement, enabling it to invest in additional juvenile fish and build up the overall biomass of its cod. The company aims to become the world's top producer of sustainably farmed cod.
Norcod entrusted the deal exclusively to SpareBank 1 Markets, which acted as manager and bookmaker.
Private placements are transacted through a funding round of securities to chosen investors, rather than being available as a public offering. Issuing takes place using an offering memorandum – a legal document that sets out the objectives, terms of investment and risks, and includes detailed descriptions and financial details about the company and its management team.
Such transactions involve a considerable amount of administration, and require the expertise of specialist financial institutions.
In a LinkedIn post last week, SpareBank 1 Markets congratulated Norcod on the private placement, and for completing the first steps towards establishing cod farming on an industrial scale. Norcod is the first to achieve this, and is leading the field in cod aquaculture, the firm noted. The company takes inspiration from the salmon farming industry, using the latest sophisticated ideas, technology, and equipment.
“(Norcod) is targeting its first harvest in 2021 with a harvest volume of 6,500 metric tons (MT), and a further scale-up to 25,000 MT in 2025,” the LinkedIn post said.
Norcod put its first batch of juveniles to sea in January 2020, following a collaborative agreement with Namdal Settefisk. The next batch of juveniles is expected to be transferred to sea from the onshore hatchery and nursery in June 2020.
Speaking to SeafoodSource at the time of the transfer, Norcod Managing Director Rune Eriksen said that the collaboration should help his company to achieve an eventual harvest volume of 36,000 MT per year.
Photo courtesy of Norcod