Norwegian farmed salmon producer Atlantic Sapphire pulled in nearly USD 90 million (EUR 80 million) in 29 minutes in a private placement – a private rather than public sale of stocks, bonds, or securities – on 7 May.
The equity raised at the Oslo Stock Exchange in Norway totaled NOK 783 million (USD 89 million, EUR 80 million).
The funds were obtained so quickly because Atlantic Sapphire revealed that it is accelerating its Miami, Florida, U.S.A. recirculating aquaculture system (RAS) farm buildout, Karl Øystein Øyehaug, finance director for Atlantic Sapphire, told SeafoodSource.
“We expect to harvest the first fish from the U.S. in mid-2020,” Øyehaug said.
The new Miami farm construction plan “allows for continuous build-out in smaller phases expected to reduce construction completion time per step,” Atlantic Sapphire said in a 7 May presentation to investors.
Its initial “Phase 2a” construction is expected to bring 10,000 metric tons of production volume 12 months earlier than the former plan, and establishes a path for the company to deliver 220,000 metric tons of annual production by 2031, “which will require additional land”, Atlantic Sapphire said.
The producer is planning to acquire up to an additional 300 to 500 acres of land in South West Miami-Dade County near Miami.
Total construction costs through 2031 are projected at around USD 2 billion (EUR 1.8 billion).
The salmon from its Miami facility will primarily be sold in the U.S. market, as well as in Canada and Mexico, according to Øyehaug. The company is targeting all segments – including retail and foodservice – but has not yet named buyers, Øyehaug said.
Investors – including Vatne Equity, ASInvest, and board member Alexander Reus – were also buoyed by Atlantic Sapphire’s success in Denmark.
“We are already producing fish in Denmark; we have the largest land-based salmon facility, producing with a production capacity of 2,400 metric tons (head on, gutted) annually,” Øyehaug said. “The investors see what we are doing in Denmark and have done for a long time. We know how to do it, and are doing the same thing in the U.S.”
The supplier has received “positive feedback on product quality, brand attributes, and taste” of its salmon, according to its presentation.
