Norwegian land-based salmon farming company Salmon Evolution ASA has confirmed the book-building process for a private placement of new shares has been successfully completed, raising gross proceeds of NOK 525 million, through the allocation of 68,181,818 new shares in the company, each at a subscription price of NOK 7.70 per offer share.
The company said a private placement will enable it to secure estimated equity financing in relation to phase 2 build-out on Indre Harøy.
It will also reduce execution and completion risk and allow the company to raise capital more efficiently, which it said is particularly important in light of the ability to utilise current market conditions, raise capital at a lower discount compared to a rights issue and without the underwriting commissions normally seen with rights offerings.
The following primary insiders (PDMRs) of the Company and their closely associated companies were allocated offer shares at the offer price:
- Ronja Capital II AS, a company closely related to Tore A Tønseth (Chairperson of the Board), was allocated 2,597,403 offer shares
- Ocean Industruies AS, a company closely related to Glen Bradley (board member), was allocated 25,974 offer shares
- Anne Breiby (board member) was allocated 64,935 offer shares
- Trollkyrkja AS, a company closely related to Trond Vadset Veibust (CFO), was allocated 32,468 offer shares
- Anno Invest AS, a company closely related to Odd Frode Roaldsnes (CCO), was allocated 250,000 offer shares
The private placement consists of one tranche of 51,863,220 offer shares and a second tranche of 16,318,598 offer shares.
Salmon Evolution is targeting a production capacity of 100,000 tonnes HOG by 2032. Its first production facility is strategically located at Indre Harøy on the Norwegian west coast, with Phase 1 already in operation. Fully developed, the Indre Harøy facility will have an annual capacity of 31,500 tonnes HOG.
The company has also entered into a joint-venture with Dongwon Industries where the parties will develop, construct and operate a land-based salmon farming facility in South Korea with an annual production capacity of 16,800 tonnes HOG, using Salmon Evolution’s chosen hybrid flow-through system technology (HFS).
It has further initiated a process with the aim of establishing a land-based salmon farming operation in North America.
