Trondheim, Norway-based Norcod, an aquaculture company that farms Atlantic cod (Gadus morhua) in mid-country fjords, announced a successful private placement earning NOK 175 million (USD 20 million, EUR 18.3 million) at the end of March 2022. The funds were raised through an allocation of 2,187,500 shares at a subscription price of NOK 80 (USD 9.20, EUR 8.39) per share.
Norwegian investment banks ABG Sundal Collier and Arctic Securities AS acted as underwriters in the process and the private placement was approved at an extraordinary general meeting of the company.
Norcod said in a release the new funds will be used to increase biomass in line with its production plan, develop two new farming locations, and for general corporate purposes. At present, its maximum allowed biomass at its cage sites is 10,320 metric tons.
Since August 2021, Norcod, which is listed on Oslo’s Euronext Growth market, has been gradually harvesting its first commercial batch of cod, and as of February was on target to achieve 5,000 MT in production by April.
The company said it aims to plug a market gap that is not filled by seasonal wild-caught cod, and to attract consumers concerned about increasing pressure on wild stocks. As part of its sustainability efforts Norcod has gained GlobalG.A.P. certification, and is aiming for organic and Bio certification for part of its future production. The company also said it uses up to 98 percent of the fish during processing, to minimize waste.
“We aim to secure premium prices for a quality product. The major European destinations for our cod are the U.K. and France, followed by Germany and Spain,” Norcod CEO Christian Riber said.
Cod juveniles from joint-venture partner Havlandet are being phased into the sea sites in batches, to ensure year-round availability of harvest-size fish. In 2021, 2.2 million fish were transferred into Norcod cages.
Norcod is currently raising a batch of 4 million seventh-generation cod fry in land-based facilities that will be transferred to sea sites this summer, with the expectation of providing a future harvest volume of 11,000 MT, it said.
According to the company’s Q4 report, it decided to extend the sea phase of those fry to deliver an average of four kilograms or larger fresh cod to the market, with a consequent 10 percent increase in expected harvested volume in 2025 to 27,500 MT. By delivering larger fish to market that are highly suited to fillet production, Norcod said it hopes to achieve higher prices.
Photo courtesy of Norcod
