Norcod continues to raise capital

Following the success of its last private placement, the Norwegian cod producer is launching a new offer aimed at shareholders who were unable to participate.
The strong demand for farmed cod globally means that Norcod needs to raise capital again to be able to increase its biomass and expand.

The strong demand for farmed cod globally means that Norcod needs to raise capital again to be able to increase its biomass and expand.

Photo: Norcod.

In its Q4 2023 results report, Norcod said it had identified "a need for equity to cover the company's working capital requirement" to continue with its expansion plans and announced a private placement for Q1 2024. Nevertheless, despite its success - it managed to raise NOK 170 million (EUR 14.65 million - USD 15.87 million) - the Norwegian cod producer is still raising capital, up to a further NOK 16 million (EUR 1.37 million - USD 1.49 million) in this subsequent offering.

Recent private placement concluded with great success

According to Norcod's latest report, during 2023 its production accounted for approximately 71% of the total Norwegian export volume of farmed cod. The main markets were Central and Western Europe, but the company intended to strengthen its position in other markets, such as Asia.

This focus on new markets such as the United States, Japan, or China - where earlier this year it secured a lucrative export agreement with a local distributor - is associated with a need to increase its biomass and, consequently, also a need for working capital due to the expected high operating and financial costs.

Thus, last month, the company offered a private placement of shares so successful that the company was able to secure its minimums even before the launch. Norcod then said that a "high-quality long-term industrial investor" had joined the existing majority shareholders, and together, they had covered NOK 124.9 million (EUR 10.9 million - USD 11.8 million) of the target amount, which ranged from NOK 100-150 million (EUR 8-13 million - USD 9-14 million).

A few days later, we learned the company had managed to raise a total of NOK 170 million (EUR 14.65 million - USD 15.87 million), and the unknown industrial investor was the Nova Scotia-based company High Liner Foods, which would receive approximately 10% of the shares and a seat on the Board of Directors.

Offering for existing shareholders who were out from the private placement

However, the solid long-term market outlook for farmed cod means the company still needs to increase its capital, so it is now launching this subsequent offering of up to 1,333,333 new shares aimed at the company's existing shareholders at the close of trading on February 29, 2024, when the private placement closed.

Those who were not allocated shares at that time or were not included in the pre-sounding phase are the recipients of this new offering at a subscription price of NOK 12 (EUR 1.05 - USD 1.14) per share, the same as set in the private placement.

Norcod has advised that each eligible shareholder will be granted 0.119 subscription rights for each existing share held of record, and each subscription right will entitle them to subscribe for and be allocated one (1) share in this subsequent offering. Oversubscription is permitted, but the offering is limited to the 1,333,333 shares mentioned above, up to the intended NOK 16 million (EUR 1.37 million - USD 1.49 million).

The subscription period for this offering began on March 22, 2024, at 09:00 CET and will end on April 4, 2024, at 16:30 CET.

About Norcod

Although the core business of Norcod AS is commercial cod farming, it is involved in the entire value chain through ownership and partnerships. Its fish farms are located in central Norway, with ideal conditions for cod performance. Listed on the Euronext Growth market in Oslo, the company contributes to value creation in the blue ocean with minimal impact on the environment, while supporting local communities.

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