Last week Statt Torsk confirmed its merger with Vesterålen Havbruk after a difficult year. Now, the whitefish group announces a private placement of new shares to raise gross proceeds of between NOK 50 million (EUR 4.28 million / USD 4.66 million) and NOK 100 million (EUR 8.56 million / USD 9.33 million).
The price has been set at NOK 25 (EUR 2.13 / USD 2.33) per share offered, although it is not yet known what the total number of shares Vesterålen Havbruk will issue in this private placement will be. The company has said that the amount will be determined by its Board of Directors in consultation with its managers, Pareto Securities and SpareBank 1 Markets.
However, the company did clarify what it would use the money for. According to the statement to the Norwegian Stock Exchange issued today, the net proceeds from this private placement will be used to finance the juveniles and on growth for both production regions - Region North and Region South - in 2024, complete the restructuring of Statt Torsk, strengthen the working capital of Vesterålen Havbruk AS and its subsidiaries due to increased production of finished goods, as well as for general corporate purposes.
The initial amount of NOK 50 million (EUR 4.28 million / USD 4.66 million) appears to be secured as some existing shareholders of Vesterålen Havbruk and the company have previously committed to subscribe for shares in the offering for approximately that amount, which will be partially settled by converting the outstanding amounts of the loan notes issued by Vesterålen Havbruk in H2 2023 and partially in cash.
In addition to existing shareholders of Vesterålen Havbruk and the company, the private placement will target selected Norwegian and international investors. The application period has started today, 22 November 2023 at 09:00 hours (CET) and will end on Friday, 24 November 2023 at 16:30 hours (CET). The payment date is expected to be on or about November 30, 2023, and the offer shares are expected to be delivered to applicants on or about December 18, 2023.
The merger between Statt Torsk - as the transferring company - and Vesterålen Havbruk Statt, a wholly owned subsidiary of Vesterålen Havbruk - as the acquiring company - will be carried out with consideration to the shareholders in the form of shares in Vesterålen Havbruk. Upon completion, Statt Torsk will be delisted from the Euronext Growth stock exchange in Oslo.
This 2023 has been a challenging year for Statt Torsk, which had to undertake a restructuring in August, resulting in the loss of eight jobs. In addition, it decided to postpone production at its new Rekvika farming site, denting its finances by NOK 50 million (EUR 4.28 million / USD 4.66 million) in costs. At the end of the first nine months of the year, the company accumulated an overall operating loss of NOK 79.5 million (EUR 6.7 million / USD 7.1 million).
It was against this backdrop that it decided to join forces with larger whitefish company, Vesterålen Havbruk, to expand cod farming. The merger, as well as this private placement, will give it a much-needed cash boost and a more stable base for future expansion. "It is a strategic move of consolidation of our young industry. A business combination with Vesterålen Havbruk is our preferred option to optimise shareholder value," Statt Torsk CEO Gustave Brun-Lie said back in September, announcing the deal.
The new entity anticipates a harvest of 3,500 metric tons of farmed cod this year, with the goal of producing 12,000 metric tons by 2025. As Brynjar Kværnstuen, CEO of Vesterålen Havbruk, said, the merger will give the new entity flexibility to deliver cod to market year-round in the future, combining harvests from sites in the north and south. "With decreasing quotas on wild cod in the coming years, the timing for scaling farmed cod has never been better," he stated.
Vesterålen Havbruk AS is a privately owned whitefish group located mainly in the municipalities of Øksnes and Bø, Norway, which has 200 employees. The company’s subsidiaries are involved in the harvesting of farmed cod, processing facility for wild and farmed cod and salmon, and are also running a traditional fish reception. It has already conducted one production cycle on farmed cod in the Northern areas, and, in Q4 2023 the company will have the first operational stun and bleed vessel delivered, specialized for farmed cod.
