Andfjord Salmon plans subsequent share offer after raising NOK 350 million, including participation from High Liner

“We feel that Andfjord is an ideal partner that possesses the proven technology and experience High Liner Foods can work with and learn from."
A diagram showing planned construction at Andfjord Salmon's Kvalnes site
A diagram showing planned construction at Andfjord Salmon's Kvalnes site | Image courtesy of Andfjord Salmon
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Andfjord Salmon CEO Martin Rasmussen confirmed High Liner Foods’ participation in a NOK 350 million (USD 32.9 million, EUR 30.3 million) private placement concluded 21 May.

“The net proceeds from the private placement will be used to expand our production capacity at Kvalnes, ramping up biomass, and for general corporate purposes,” Rasmussen told SeafoodSource.

Lunenberg, Nova Scotia, Canada-based High Liner Foods announced it contributed USD 10 million (EUR 9.2 million), paid from cash from its operations, in exchange for an approximately 4.5 percent share of ownership in Andfjord, which is building a flow-through land-based salmon farm on the island of Andøya in the Arctic archipelago of Vesterålen, Norway.

"Salmon is an important growth species for High Liner Foods, and we believe that land-based aquaculture will become an important component of the global salmon supply chain that will help bridge the gap between supply and demand," High Liner President and CEO Paul Jewer said. "[The] modest investment will give High Liner Foods a platform to gain operational insights and experience in land-based aquaculture as part of our ongoing efforts to meet the growing consumer demand for sustainably sourced and eco-friendly seafood products.”

Jewer said Andfjord’s ambitious expansion plans, targeting a production capacity of 40,000 metric tons by 2030, and its innovative approach to salmon farming drew High Liner into making the investment.

“We feel that Andfjord is an ideal partner that possesses the proven technology and experience High Liner Foods can work with and learn from as we focus our efforts on growing our Atlantic salmon business in North America,” he said.

Rasmussen said the private placement of over 10.6 million shares at NOK 33 (USD 3.09, EUR 2.86) per share was significantly oversubscribed, with additional participation from Jerónimo Martins Agro-Alimentar, which now holds 25.1 percent of the company’s outstanding shares and invested NOK 87 million (USD 8.2 million, EUR 7.5 million) to do so, and Eidsfjord Sjøfarm, which invested NOK 15.9 million (USD 1.5 million, EUR 1.4 million) and how holds 4.5 percent of the company’s outstanding shares.

Previous investors include Holmøy and Nutreco, through which it has developed a strategic feed supply agreement with Skretting on a proprietary feed called Calanus Plus by Andfjord Salmon, which uses the zooplankton Calanus finmarchicus.

On 23 May, it announced a subsequent offering of 796,530 new shares directed toward existing company shareholders. The company’s stock price Euronext Growth exchange on the Oslo Stock Exchange, listed under the symbol ANDF, closed at NOK 33.20 (USD 3.11, EUR 2.87) on Thursday, 23 May.

In February 2024, Andfjord announced plans to implement a post-smolt production strategy to capitalize on its unutilized pool capacity in the first half of each production cycle. The plan, which includes a strategic partnership with Eidsfjord Sjøfarm and Holmøy Havbruk, will give it an estimated 15 percent to 25 percent bump in its EBIT and will enable a 10 percent higher biomass turnover without the need for additional infrastructure capex, according to the company.

“Our Kvalnes build-out is on track and on budget, and the post-smolt opportunity we announced on 29 February has generated significant interest from industrial investors,” Rasmussen said. “We decided to utilize this positive momentum to our advantage and raise funds that provide us with added financial flexibility. We are delighted that strong, international industrial investors subscribed for substantial amounts in the private placement.”

Andfjord Salmon Group reported an operating loss of ...

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