The Kingfish Company successfully raised EUR 32 million (USD 34 million) via an unsecured convertible loan, the company announced on 5 July.
The new loan will partially be used to finance phase two of its Zeeland, the Netherlands-based recirculating aquaculture system. The company announced the commissioning of phase two had started in April 2023, after adjusting the cost estimate to finalize the facility upward to EUR 95 million (USD 103 million).
"The successful placement of the convertible loan will secure the completion of phase two,” Kingfish Company CEO Vincent Erenst said in a release. "We are in the process of more than doubling our production capacity to meet the increasing demand for Dutch yellowtail. The proceeds from the convertible loan will provide full funding for the expansion until we reach positive cash flow from operations and sustainable profitability.”
The convertible loan is part of The Kingfish Company's previously-announced plans to raise additional equity or debt during 2023. In addition to the phase two costs, the net proceeds of the loan will also be used for making the company’s operations cash-positive, it said.
The loan has been split into two tranches, the first consisting of 10,763,182 shares raising an equivalent of EUR 10 million (USD 10.8 million) in funding, and the second consisting of 70 million shares sold for EUR 22 million (USD 23.9 million).
A mandatory notification of trade issued by The Kingsfish Company reveals it granted 3,275,863 shares from tranche one to Creadev International and 1,247,277 to Stolt-Nielsen. Creadev Investment Director Alexandre Van Der Wees and Stolt-Nielsen President Jordi Trias Fita serve on The Kingfish Company's board of trustees.
While most of the funding for the loan was sourced from existing shareholders, Ocean 14 Capital Fund also subscribed as a tranche-two investor for EUR 11 million (USD 11.9 million). Ocean 14 Capital Limited – the investment advisor to Ocean 14 Capital Fund 1 SCSP – announced in March 2022 it was planning to build a portfolio of 20 to 25 holdings in the seafood sector.
“The Ocean 14 team has over 25 years of aquaculture industry experience, including significant experience with RAS technology, further complementing the company's list of reputable investors,” The Kingfish Company said.
ABG Sundal Collier – which recently also worked with Norcod on a private placement – served as the sole financial advisor for The Kingfish Company’s convertible loan.
The Kingfish Company has already begun construction on phase two of its Zeeland facility and one of its grow-out facilities is now in operation, according to Erenst.
“The new facility has been running very well since the start and we are proud to have increased biomass by more than 100 tons in just over one month time,” he said. “This is a testament to the advanced design and the skills of our team.”
Photo courtesy of The Kingfish Company
