Exterior of Proximar Seafood's facility in Oyama, Japan.
Photo: Proximar Seafood
Land-based salmon farming company Proximar Seafood plans to raise at least NOK 100 million (€8.5 million/$9.4 million) through a convertible bond as it looks to secure additional funding for its operations and address its longer-term financing needs.
The Norwegian land-based salmon farmer has also launched a strategic review that will consider bringing a long-term industrial investor into its operation in Japan.
The first tranche of the proposed bond will comprise at least NOK 75 million in new subscriptions and NOK 25 million rolled over from Proximar’s existing convertible bond. The proceeds will be used to fund working capital and operations, strengthen the company’s liquidity buffer and support the continued build-up of biomass and harvest volumes at its facility near Mount Fuji, the company said.
The financing comes after lower-than-planned harvest weights and sales volumes put pressure on Proximar’s revenue and short-term cash flow during the first half of 2026.
As previously reported by WeAreAquaculture, Proximar secured a covenant waiver from its syndicated banking group in April after its revised Q1 harvest plan affected average two-month sales volumes. The company has now received a further waiver relating to the same sales covenant for the second quarter, it confirmed.
Part of the proceeds from the new bond will be used to meet a request from the banks to strengthen Proximar’s cash position in connection with the latest waiver.
The company is also discussing a possible 12-month extension of its NOK 586 million syndicated bank loan, which is due to mature in August 2026.
“We are pleased with the continued support from our banks and investors, which secures our near-term liquidity and allows us to keep full attention on operations,” said CEO Joachim Nielsen.
“Our priority remains a stable supply of fish above 3 kilos, which together with our attractive investment cost and operating cost advantages leaves us well-positioned for strong margins,” he added.
Proximar reported an average harvest weight of 2.56 kg HOG in the second quarter, up from around 2.25 kg in Q1, after beginning a targeted harvest of smaller fish in June to free up tank capacity.
Its stated priority is to increase the average harvest size to above 3 kg, where the company achieves higher prices. Fish above that threshold sold for an average of approximately NOK 75 per kg in Q2, compared with an overall average selling price of around NOK 64 per kg.
The proposed convertible bond will mature in July 2029 and have a conversion price of NOK 0.60 per share. It will be non-convertible for the first six months and carry a 13% payment-in-kind coupon during its first year. After this, it will pay either a 15% payment-in-kind coupon or a 7% annual cash coupon.
Proximar said several of its largest shareholders and bondholders support the issue. However, it remains subject to final subscription orders and a series of approvals from shareholders, existing bondholders and creditors.
The company said it intends, where practicable, to invite shareholders and existing bondholders not included in the first tranche to participate in further tranches on the same terms within the next couple of months.
Proximar has also announced its board has appointed Nomura International to carry out a strategic review aimed at strengthening the company’s capital structure and addressing the longer-term refinancing of its balance sheet. The review will consider a broad range of options, including seeking a long-term industrial investor for the Japanese business.
Proximar said the process follows improved operational and biological performance and what it described as "strong investor interest" in the company in Japan.
The company began harvesting Atlantic salmon at its Oyama facility in September 2024 and markets the fish under the Fuji Atlantic Salmon brand.