Norwegian land-based salmon farmer Salmon Evolution has taken another successful step forward, raising NOK 525 million (EUR 45.6 million / USD 50 million) through a private placement this week.
The private placement allocated over 68 million new shares in the company, with a subscription price of NOK 7.7 (EUR 0.66 / USD 0.73) per Offer Share. Share price at the close of trading on 18 April was NOK 8.34 (EUR 0.72 / USD 0.79).
The funds, the company said, will be used to accelerate the phase 2 build-out of its Indre Harøy facility on Norway's western coast.
The land-based Indre Harøy facility has been designed for a total annual production capacity of 31,500 tonnes Head-on gutted salmon from its completion in 2028. It is being developed in three phases, with phase one providing an annual production capacity of 7,900 tonnes Head-on gutted salmon from 2023.
In addition to enabling faster construction, the company said the financial move "will reduce execution and completion risk and allows for the Company to raise capital more efficiently, which is particularly important in light of the ability to utilize current market conditions".
The total of 68,181,818 new shares were rapidly snapped up by investors, with the opportunity closing within just 24 hours. Investors named in Salmon Evolution's statement include Ronja Capital II, Ocean Industries, Trollkyrkja and Anno Invest.
Salmon Evolution has also recently released its annual report for 2022, showing a profit of NOK 47.7 million. The company has confirmed its production ramp-up is proceeding according to plan. The land-based producer recorded an all-time high biomass production in March, with approximately 320 tonnes in net biomass gain for the month.
Salmon Evolution is a Norwegian land-based salmon farming company targeting a production capacity of 100,000 tonnes HOG by 2032. The Company's core focus is on extending the ocean's potential by transferring the best preconditions offered by the sea to farm fish on land through its chosen hybrid flow-through system technology (HFS). This secures a truly sustainable production process with controlled and optimal growth conditions and limiting operational and biological risk. Salmon Evolution ASA is listed on Oslo Børs under the ticker SALME.