Atlantic Sapphire secures USD 25 million credit facility
Atlantic Sapphire has secured an additional USD 25 million (EUR 22.9 million) credit facility, with DNB Capital LLC as the lender.
The funds will be used to fully finance phase two of the company’s U.S. recirculating aquaculture system (RAS) project in Miami, Florida, U.S.A.
The new line of credit is scheduled for repayment in three months, according to the company.
“The facility provides for immediately available funds and secures the group additional liquidity while the details of the overall long-term financing are being finalized,” Atlantic Sapphire said.
Atlantic Sapphire is building a large land-based salmon RAS facility in Miami, Florida, U.S.A. with the eventual goal of farming 220,000 metric tons (MT) of salmon a year.
Atlantic Sapphire completed the first phase of the project, with a capacity of 10,000 MT, in early 2021. But the company was hit by numerous challenges, including a mass salmon mortality at the Miami facility in March and another mortality incident at its Denmark facility. Then the Danish facility was destroyed by a fire in September 2021.
Despite the setbacks, Atlantic Sapphire Chief Sales and Marketing Officer Damien Claire told SeafoodSource in January the firm's executive team remains confident the company's overall goals are achievable and that it will reach its production target by 2031.
The day after announcing the new credit facility, Atlantic Sapphire said a police investigation of the fire that consumed its land-based farming operation in Hvide Sande, Denmark, was inconclusive. The report found no evidence of arson in connection with the incident, it said. The fire caused an estimated USD 31 million (EUR 25.2 million) in damages, with the farm ruled a total loss.
Claire told SeafoodSource in January that the company is still considering its options regarding the remains of its Danish facility.
“There are several potential options being considered for our Danish Bluehouse, but a thorough evaluation of each is required before we can make a decision,” he said.
In its most-recent update, Atlantic Sapphire did not provide additional details about the future of its Danish operations.
“With the investigation now concluded, Atlantic Sapphire ASA will continue to work its future plans for Atlantic Sapphire Denmark,” the company said.
Photo courtesy of Atlantic Sapphire