Atlantic Sapphire CEO Pedro Courard.
Photo: ASC / Atlantic Sapphire.
Land-based Florida salmon farming company Atlantic Sapphire has announced it may soon be seeking additional financing, after the company said improved operations had not yet translated into sufficient cash flow to support its bid for EBITDA breakeven this year.
The company, which last year forecast reaching positive EBITDA by the end of 2026, said in a stock exchange update on Friday that it needs between USD 15 million and USD 25 million in new capital to continue executing its Phase 1 plan and to maintain adequate liquidity.
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.
That prediction has now fallen short, with the company now in talks with its largest shareholders about possible funding options.
CEO Pedro Courard previously described the first half of 2025 as a "turning point" for the business, with a "clear line of sight to profitability," and in this most recent update, Atlantic Sapphire reiterates this stance, maintaining the past 18 months have seen a broad operational turnaround in production and processing, as well as commercial activities.
Harvest volumes increased from 4,365 tonnes in 2024 to 5,096 tonnes in 2025, while average harvest weight rose from 1.7 kg to 2.9 kg. The company also reported a higher share of superior grade fish and better prices, alongside stable biological indicators such as mortality and feed conversion ratios.
However, in its most recent trading update for the final quarter of 2025, the company showed a drop in harvest volume, with 1,183 tonnes achieved, compared with 1,427 in the previous quarter. Average harvest weight also fell slightly to 2.9 kg, while the achieved sales price dipped to USD 8.28 per kg from USD 8.58 per kg in the third quarter.
Atlantic Sapphire says it has cut costs and improved efficiency across the business, and notes that investments in additional biofiltration and degassing capacity are being rolled out in stages, with the full impact expected to become clearer as the systems are fully operational.
Despite these changes, the company said cash flow remains under pressure.
“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,” the company stated in its announcement, adding, “Certain cost reduction and efficiency initiatives have taken longer than initially assumed to fully materialize, and the Company’s financial development remains sensitive to execution timing and market conditions.”
Looking ahead, the land-based aquaculture firm said its revised plan aims for harvest volumes of approximately 7,000 tonnes in 2026, rising towards 7,500 to 8,500 tonnes as operations continue to be optimised.
“The Company remains focused on continued operational improvements, disciplined cash management and execution of its Phase 1 plan,” the Atlantic Sapphire statement read.