Proximar Seafood conducts share placement, applies for listing on Euronext Growth Oslo exchange

Published on
January 21, 2021

Bergen, Norway-based Proximar Seafood AS, which is seeking to build a recirculating aquaculture system facility in Japan that will raise up to 26,400 metric tons (MT) of Atlantic salmon in Yama, Japan, has initiated a private share placement of NOK 400 million (USD 47.3 million, EUR 39 million), with plans to list on the Euronext Growth Oslo exchange.

In a 21 January filing with Euronext, the company said it anticipated the first day of public trading of its shares to be on or around 3 February, 2021.

The company’s private placement includes more than 24 million shares at a subscription price of NOK 16.20 (USD 1.92, EUR 1.58) per share. That price values Proximar’s current value at approximately NOK 245 million (USD 29 million, EUR 23.9 million), based on its 15,096,290 shares currently outstanding.

Proximar’s new investors include aquafeed manufacturer Nutreco, which purchased NOK 35 million (USD 4.1 million, EUR 3.4 million) in Proximar shares; the family of Per Grieg, founder of salmon farming firm Grieg AS, which has invested NOK 22.9 million (USD 2.7 million, EUR 2.2 million) in Proximar; Espen Aubert, founder of investment firm Daimyo AS, who has invested NOK 25 million (USD 3 million, EUR 2.4 million) in Proximar; and Helge Nielson, founder of business consultancy Helida AS, who bought shares worth NOK 1.5 million (USD 178,000, EUR 146,000).

The company’s previous investors include DNB Asset Management AS; Fondsfinans Kapitalforvaltning AS; Klaveness Marine Finance AS; Pactum AS; T.D. Veen AS; and Tycoon Industrier, all of which have agreed to invest an additional NOK 20 million (USD 2.4 million, EUR 2 million) in Proximar.

 “This private placement is an important milestone for the company, bringing us one step closer to our goal of serving fresh Atlantic salmon to the Japanese market on the same day as harvest,” Proximar Seafood CEO Joachim Nielsen said in a press release. “Our location at the foot of Mount Fuji, in close proximity to one of the world’s most important fish markets, implies significant advantages, both in terms of reduced cost and reduced carbon footprint.”

In its statement, Proximar warned its proceeds from the private placement are “not sufficient to fully finance the construction of the Phase 1 facility and the company thus relies on further financing.”

Proximar’s plans for its facility in Japan, which will be located near the iconic Mt. Fuji, less than two hours’ drive away from Tokyo and Yokohama, include a Phase 1 facility that will have a capacity to farm up to 5,300 MT of head-on, gutted Atlantic salmon. The company said it has signed a contract with AquaMaof to provide the infrastructure for the RAS system, and it expects to begin construction on that facility in the next few months, with its first harvest to be competed in the first half of 2024.

Proximar also announced eventual plans to expand its facility to farm approximately 21,100 MT in a facility to be built adjacent to the Phase 1 facility.

Proximar said besides proximity to a huge established market for Atlantic salmon, the site also has the advantage of accessing abundant high-quality groundwater. Additionally, local farming of salmon will present a more environmentally friendly choice for Japanese consumers, Proximar said, and will help the company compete on cost with Norwegian and Chilean imports.

“Proximar expects an EBIT cost of approximately NOK 45 [USD 5.34, EUR 4.39] per kilogram for Phase 1 – slightly above the average production cost of Norwegian sea-based salmon farmers – and approximately NOK 40 [USD 4.74, EUR 3.90] per kilogram [head-on, gutted] post-completion of Phase 2,” it said. “In summary, a significantly lower transportation cost and a similar production cost as Norwegian sea-based salmon farmers represent a significant cost advantage for local production of Atlantic salmon in Japan compared with production in Norway.”

The Proximar proposal is one of four proposed RAS salmon-farming projects planned in Japan.

Photo courtesy of Proximar Seafood

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