Andfjord Salmon smashed its investment target in record time last week, raising NOK 150 million (USD 15.5 million, EUR 13.8 million) in a private placement. The company had set out to raise NOK 120 million (USD 12.8 million, EUR 11 million).
The deal resulted in an allocation of 3,750,000 new shares at a price of NOK 40.00 (USD 4.12, EUR 3.67) per share.
Andfjord Salmon, set up by Roy Bernt Pettersen in 2014, will use the additional funds to fit out its innovative onshore salmon farm at Kvalnes, on the island of Andøya in the Arctic Circle. They will also be used to expand into two other areas, and develop juvenile salmon production sites, to provide stock for the land-based farms. The company has a license to grow 10,000 metric tons (MT) at Kvalnes, and plans to produce 70,000 MT when all sites are operational. The first smolts are expected at Kvalnes this summer, and the first harvest is expected in 2021.
The Kvalnes facility, which is patented, is designed to keep salmon free from the effects of salmon lice and harmful algae, to prevent escapes, and to minimize the exposure of marine life to pollutants or effluent.
The private placement raised very strong interest from institutional backers and was multiple times over-subscribed, resulting in the decision to upsize the transaction, according to ABG Sundal Collier, the investment bank engaged as sole manager and bookrunner.
The upsizing meant that the three main investors were offered a pro rata increase in their allocation of shares in the private placement, resulting in DNB Asset Management and Nordea Investment Management being allocated shares worth NOK 25 million (USD 2.6 million, EUR 2.3 million) each, and Toluma Norden AS being allocated NOK 10 million (USD 1.03 million, EUR 918,000) of shares.
The interest in Andfjord Salmon is clear indication that land-based salmon farming is increasingly viewed by institutional investors as a good bet.
The private placement takes Andfjord Salmon's share capital to NOK 33.6 million (USD 3.5 million, EUR ), divided into equal shares, each with a nominal value of NOK 1.00 (USD 0.10, EUR 0.09).
The new shares will be delivered to investors on a delivery-versus-payment basis after the company registers the share capital increase with the Norwegian Registry of Business Enterprises, and issues the new shares in the Oslo Børs VPS, no later than 24 June.
Andfjord Salmon has also applied for listing on the Merkur Market, the Oslo Stock Exchange alternative marketplace. The fast admission process to the Merkur Market means that the first day of trading is expected to be in the week of 22 June, 2020.
Photo courtesy of Andjford Salmon AS
