Miami, Florida-based Atlantic Sapphire
Photo: Atlantic Sapphire.
After previously warning that improved operations had not yet translated into stable cash flow, land-based Florida salmon farming company Atlantic Sapphire has confirmed it is now seeking additional funding - and has warned it could breach loan agreements if financing is not secured by 31 March.
In a stock exchange update published today (23 March), the company said it requires between USD $25 million and $30 million to maintain sufficient liquidity and reach EBITDA break-even in its Phase 1 operations. This represents an increase from the $15-25 million it outlined in February, as previously reported by WeAreAquaculture.
In today's announcement, Atlantic Sapphire said it has refined its budgets in light of market uncertainty and the need for a financial buffer, leading to the higher estimate.
The company said it is now in discussions with its largest shareholders and other stakeholders regarding potential funding, stating: "Although the Company expects to reach an agreement with the relevant parties, no conclusion has been reached to date."
"Based on the current state of negotiations, the Board of Directors of Atlantic Sapphire believe it is reasonable, with significant revisions to the Company’s capital structure, to be able to attract and secure new capital to the business," the statement continued, although it did not provide further detail on the form this could take.
The aquaculture firm warned that failure to secure funding by the end of March would result in a technical default under certain lending agreements, which could allow lenders to take action depending on the terms in place.
Atlantic Sapphire previously secured USD 35 million through a private placement of a convertible loan in September 2025, which at the time the company predicted would fully fund operations until its Phase 1 facility reached profitability.
However, despite operational improvements taken over the past months, the company’s finances have remained under strain. The company previously reported higher harvest volumes, improved fish quality and stronger prices, alongside its efforts to reduce costs and improve efficiency - and last November indicated it expected to break even by the end of 2026.
However, in an update published in February 2026, it warned that, “While underlying operational developments are positive, the Company’s cash flow development remains impacted by the timing of operational improvements, working capital requirements and certain deviations in harvest volumes and average harvest weights.”
Atlantic Sapphire is currently optimising its Phase 1 facility in Florida, which is planned to produce around 7,500-8,500 tonnes of salmon per year, with the company aiming for 7,000 tonnes in 2026.
The company was due to publish its annual results on 23 April, but said it was delaying the publication until 30 April to enable time for discussions with key shareholders regarding the proposed financing.