First Water's land-based facility in Þorlákshöfn, Iceland.
Photo: First Water
Icelandic aquaculture company First Water has raised ISK 11 billion (approximately EUR 76.6M / USD 89.9m) in financing, through a combination of a convertible bond worth ISK 6bn, led by current shareholders, together with debt financing of around ISK 5bn from the company's existing lenders, the Icelandic banks Landsbanki and Arion Bank.
The fundraise follows an earlier share capital increase of approximately EUR 24 million in November. That funding round saw three Icelandic pension funds joining as new investors, bringing the total to eight of the country’s ten largest pension funds now holding shares in the company. Icelandic investment company Stoðir is the land-based salmon farmer's largest shareholder, holding a 33% stake.
Formerly known as Thor Landeldi, First Water is building a land-based salmon farming facility at Laxabraut in Þorlákshöfn, southwest Iceland.
In a press release, CEO Eggert Þór Kristófersson said the financing would enable the company to fully complete the construction of its Phase 1 facility, and expected to achieve a "significant increase" in export revnues as production ramps up and construction continues.
The company is aiming to double its production from 5,000 to 10,000 tonnes on completion of its Phase 1 facility, with a total of six development phases planned, comprising eight closed 25-metre tanks.
The company originally stated its aim was to produce 50,000 tonnes HOG per year once the entire facility is completed, but has since increased that figure to 60,000 tonnes.
Last September, First Water announced it was starting exports of 5 kg land-based salmon, sold to US and European buyers, and in October said its salmon was now available to consumers in Iceland. The company claims it is among the first globally to produce and market salmon of this size from land-based systems, and that customer demand has been “exceptionally strong”.
