Norwegian investment bank ABG Sundial Collier has given Norcod – a Trondheim, Norway-based company established to farm cod on a commercial scale – a “buy” rating as the aquaculture company continues to attract investments.
Norcod recently announced it had its first successful sample harvest of cod, and the company listed on the Oslo Stock Exchange’s Merkur market in October. As it listed on the market, it managed to complete a private placement of NOK 250 million (USD 29 million, EUR 24 million).
In addition to the private placement, Norway Royal Salmon Chairman Helge Gåsø recently acquired an additional 250,000 shares in the company on 31 December, according to a press release from Norcod. That investment, Norcod CEO Christian Riber said, shows investors – including those with knowledge of the aquaculture industry – are confident that the company can deliver on its goals of successfully establishing cod aquaculture.
“Our strong focus on sustainability, quality biomass, production expertise, and optimum welfare of the fish, backed by a sophisticated sales and marketing platform, is a great recipe for success,” Riber said. “Norcod is a solid operation with a bright future. We have a highly skilled team in place and look forward to our first sales of top-quality fresh cod from our first full production cycle this summer. We have buyers lined up who are eagerly awaiting our product.”
Riber, formerly the chair of the company’s board, became the CEO of the company in December, replacing Hilde Storhaug – who moved into the position of chief sustainability officer. The company’s COO – Marit Solberg – then replaced Riber as the board chair.
According to Norcod, since it established a presence on the Merkur Market, the company’s share price has increased by 60 percent, “with a positive appraisal for more upside.” The company added that it currently has 1.8 million cod approaching maturity, with a 200,000-strong pilot batch currently being raised. The company anticipates a harvest of 6,700 metric tons (MT) of cod from its first harvest in June, and the company is targeting 25,000 MT of production a year by 2025.
The company’s position in the market, ABG Sundial Collier said, is why the bank gave the “buy” recommendation.
“Norcod looks set to mitigate the seasonality in wild-caught cod and deliver a more stable supply of fresh, high-quality fish, which has been a successful formula in salmon farming,” the bank said.
Photo courtesy of Norcod
