A worker onsite at Andfjord Salmon's facility under construction in Kvalnes, Andøya, Norway.
Photo: Andfjord Salmon
Andfjord Salmon Group AS has reported its fourth-quarter 2024 financial results, alongside completing a successful NOK 600 million (EUR 51.26m / USD 53.25m) private placement to advance its expansion plans at its land-based flow-through aquaculture facility in Kvalnes, Andøya, Norway. The company is also contemplating a subsequent offering of shares, which could raise up to an additional NOK 60 million.
Andfjord Salmon is currently engaged in the build-out of its facility, and thus did not produce any salmon during the fourth quarter of 2024. This meant the company achieved close to zero revenue for the period, mirroring the same results from Q4 2023, with a net loss of NOK 19.2 million, a slight improvement from the NOK 19.4 million loss recorded in the same quarter of 2023.
In a stock exchange announcement, the Norwegian company reported it had seen "significant progress" and "strong momentum for all ongoing workstreams" for the construction of its facility, with all of these remaining on, or ahead of, schedule.
The company said it expected to complete the build-out of Phase 1 and "shared operational infrastructure" by the second quarter of 2025, and is now planning for an immediate start of Phase 2 construction.
Andfjord Salmon also indicated that recent design improvements "have enabled a 20% increase in production capacity", and confirmed it had received a bank-signed term sheet for a NOK 400 million (EUR 34.2m / USD 35.5m) construction loan to support its next expansion phase. The company added that it has also signed a term sheet for a sale and leaseback agreement of its Kvalnes harbour area infrastructure for a further NOK 400 million.
This week, Andfjord Salmon also confirmed it has successfully placed a private offering of 17,142,858 new shares at NOK 35 per share, raising gross proceeds of approximately NOK 600 million. The private placement was managed by ABG Sundal Collier ASA, Arctic Securities AS, and SpareBank 1 Markets AS.
Among the largest investors in this latest funding round were Portuguese agri-food distribution giant Jerónimo Martins Agro-Alimentar, S.A., which acquired over 6.7 million shares with a value of approximately NOK 226.5 million, according to a mandatory trade notification. The Portuguese company was already one of the largest shareholders in Andfjord Salmon, owning a 28% stake as of September 2024.
In a stock exchange announcement, Andfjord Salmon indicated the funds raised will be allocated towards the development of Phase 2 construction at Kvalnes, enhancement of fish logistics to improve production output, compliance with expected regulatory changes, and general corporate purposes.
The completion of the private placement first needs approval from an extraordinary general meeting (EGM), set to take place on March 13, 2025, following which the shares will be settled and listed on Euronext Growth Oslo, the company confirmed.
In addition to the private placement, Andfjord Salmon released a stock exchange notice stating it is also considering a subsequent offering of up to 1,714,286 shares at NOK 35 per share, to be directed toward shareholders who were not allocated shares in the private placement.
The company said its decision on whether to proceed with the subsequent offering will depend on the share price development following the private placement and other market conditions.
Earlier this week, an existing investor in Andfjord Salmon, the Canadian frozen seafood company High Liner Foods, said it planned to invest $10 million in the Norwegian salmon farming company in the coming weeks. High Liner Foods already owns a 4.5% stake in the company, having acquired $10 million worth of shares in Andfjord Salmon in May 2024.
