Iceland Seafood International (ISI) has raised ISK 1.08 billion (USD 7.8 million, EUR 7.1 million) through the issuance of 200 million new shares.
The company authorized the issuance of new shares at a 24 October 2023 shareholders meeting. The move came after the company announced in its Q3 2023 results it was forecasting a lower profit before tax, after a quarter marked by lower sales and the sale of its Iceland Seafood UK division to Danish value-added seafood producer Epersen.
Additional Nasdaq Stock Exchange filings show four of ISI's largest shareholders bought a significant chunk of the 200 million shares on offer. FISK Seafood, Brim, Jakob Valgeir, and Nesfiskur all bought additional shares in the company, with FISK and Brim each acquiring 40 million shares, while the latter two companies bought 20 million shares.
The share issuance comes during a Q4 that ISI CEO Ægir Páll Friðbertsson, who replaced former ISI Bjarni Ármannsson in September, said is a key trading period for the group. After its Q3 2023 results – which were punctuated by a year-to-date normalized loss before tax of EUR 1.9 million (USD 2.1 million) – Friðbertsson said the elevated sales during Christmas and the seasonal peak in cod sales during October and November would make or break the company’s profitability. Typically, he said, the company’s annual profitability depends on the events that transpire in Q4 2023, especially in December.
The negative performance so far in 2023 comes off of a difficult 2022. For the full year, the company posted a net loss of EUR 9.9 million (USD 10.8 million), with the company citing pushback on higher prices as a reason it performed poorly in Q4. The company’s U.K. division also dragged on the company’s finances in 2022, losing it EUR 18.2 million (USD 19.8 million).
