Norcod has launched a private placement of new shares of NOK 100 – NOK 150 million.
Norcod.
According to Norcod's last report, during the last quarter of 2023, the Norwegian cod farmer earned NOK 83M up 61% in Q4-22, and revenues by 58% to NOK 269M for the whole year.
Despite these promising data, the operating loss during the last quarter was NOK 47M compared to 32 MNOK in Q4-22. Additionally, losses increased to NOK 233M for the full year against NOK 123M in 2022.
At the same time, the company has identified "an equity need to cover the company’s working capital need" so it can continue with its expansion plans. This is the reason why it has launched a private placement of new shares of NOK 100 – NOK 150 million.
Therefore, ABG Sundal Collier has been appointed as the financial advisor for the planned Private Placement and this is expected to take place during the next first quarter.
According to the report, during 2023 Norcod represented approximately 71% of the total Norwegian export volume of farmed cod. The main markets were Central and Western Europe and now the company expects to strengthen its position in the Asian market.
Looking ahead to 2024, Norcod expects more bottlenecks on the supply side of Atlantic cod due to quota cuts for Barents Sea cod. Also, it has put an eye on foreign markets such as the United States, Japan, and China. These markets have "great potential" in terms of volume and price, as they value the high quality and freshness of farmed cod.
In more detail, Norcod's harvest in 2023 increased by 60% with a 90% increase during the final three months, from sites Jamnungen and Forså. The increase in production cost was due to price increases on feed, labor, and raw materials, increasing interest rates, and currency, partly offset by improved biology and feed factor.
