Proximar secures additional $1.9m in funding, Q3 performance "confirms business model"

Proximar Seafood has released its financial and operational results for the third quarter of 2024, which marked the company’s first commercial harvest and sales of Atlantic salmon, achieving premium pricing, with an average of NOK ~130 (approx. USD 11.7 / EUR 11.1) per kilogram.

“Proximar is the first producer of Atlantic salmon in Japan, years ahead of the competition," said CEO Joachim Nielsen. "We are now finally able to supply the Japanese population with domestically produced Atlantic salmon. The premium price achievement for our fish in the market is another confirmation of our business model, demonstrating the significant cost advantage of local production in Japan."

The Norwegian land-based farming company, which operates Japan's first large-scale salmon farm in Oyama, at the foot of Mount Fuji, has also separately announced it has secured an additional JPY 300 million (approx. NOK 22 million / USD 1.9m / EUR 1.8m) bank loan facility, which will provide additional working capital and liquidity. The loan, set to mature on August 31, 2025, will be available by the end of November and was negotiated on favourable terms, Proximar said. During the third quarter, Proximar also secured NOK 40 million from convertible bonds and NOK 75 million in new loans from Japanese lenders.

The company’s first commercial harvest, conducted on September 30, produced 1.2 tonnes of Atlantic salmon, with 100% graded as superior. Weekly harvesting began in October, with the average harvest size reported at 4.03 kg per fish, and by mid-November, Proximar had sold 19.2 tonnes, maintaining a high superior grade rate of 99.2%.

The company’s Fuji Atlantic Salmon brand was officially launched in October, receiving significant media attention and positive feedback, the company reports. A launch event at the headquarters of its partner, Marubeni Corporation, in Tokyo attracted 18 media outlets, including Japanese public brodcaster NHK and national newspapers Nikkei and Suisan-Keizai.

This heightened awareness has driven strong demand from both high-end buyers and consumers, the company said. Proximar also cites the location of its facility, which enables delivery to Japan’s major cities within six hours, as a significant competitive advantage.

Operational progress during the quarter included an increase in biomass to 733 metric tonnes by the end of September, a rise from 360 metric tonnes at the end of the previous quarter, with further growth to 877 metric tonnes by mid-November.

Nine batches of fish were transferred to the grow-out facility during the quarter, with a tenth batch added in November. Construction of the grow-out building is nearing completion, with one module operational and the remaining modules expected to be ready by the end of the year.

Proximar reported in the second quarter it had encountered some challenges due to water turbidity in the grow-out building, temporarily limiting feeding and growth rates. In its Q3 report, the company confirms that installation of an ozone system has delivered positive results, significantly reducing turbidity in one module, and similar improvements are expected across all modules by the close of 2025.

While these challenges prompted a reduction in the planned 2024 harvest volume to approximately 80 tonnes, Proximar indicated it remains confident in its combined 2024/2025 harvest target of 4,700 tonnes and its goal of reaching full production capacity of 5,300 tonnes by 2027.