Atlantic Sapphire has successfully raised NOK 1.016 billion (USD 123 million, EUR 100 million) through the private placement of 10.3 million new shares at a price of NOK 98.60 (USD 11.94, EUR 9.79) per share.
The private placement, which was oversubscribed, took place through an accelerated bookbuilding process managed by Arctic Securities, BofA Securities, and DNB Markets after close of markets on 3 June, according to a press release published via the Euronext Market.
Net proceeds of the private placement will be used to partly finance "phase two" construction of the company’s Bluehouse recirculating aquaculture system farm in Miami, Florida, U.S.A., facility later this year, which will give the company approximately 25,000 metric tons (MT) of Atlantic salmon production by 2023. Construction is anticipated to commence in the second quarter of 2021. The funds will also be used for long-lead investments and construction of centralized infrastructure such as power and chiller plants that will benefit subsequent build-outs and general corporate purposes.
The funding is good news for the Sande, Denmark-based company, which dealt with its second mass-mortality at its Miami facility in March. According to the company, an initial analysis has indicated a flaw in the design of the RAS caused “significant amounts of particles to flow from the drum filters (particle filtration systems) into the biofilters and trickling filters.”
Following the incident, Atlantic Sapphire made changes to its executive management and organization for the U.S. operation of the company, including the replacement of COO Dharma Rajeswaran with interim COO Bjørn-Vegard Løvik. It also cut ties with its RAS technology provide, Billund Aquaculture.
In April, stock prices plunged after the release of the company’s first quarter financial results, in which the company reported a net loss of just over USD 55.2 million (EUR 46 million) in 2020, and it declared Q1 2021 a “lost quarter” for biomass gain at its U.S. facility.
The falloff in price of Atlantic Sapphire’s stock after its March mortality event had a knock-on effect on other publicly-traded RAS aquaculture companies. When Atlantic Sapphire stock price slipped, so did the company’s peers, including Andfjord Salmon, Nordic Aqua Partners, Proximar Seafood, and Salmon Evolution.
Photo courtesy of Atlantic Sapphire
