Land-based salmon producer Salmon Evolution, which has plans for facilities in South Korea and Norway, is seeking to raise NOK 450 million (€43.8 million/$52.8 million) to NOK 550 million (€53.6 million/$64.5 million) in fresh equity as it advances with construction.
The funds will be used for the first phases of both the Norwegian and South Korean facilities. However, the company did not disclose who will participate in the equity raising round.
The equity raising issue is running in parallel to bank financing, which the company expects to be in place during the next quarter.
Salmon Evolution is in full swing with the construction of a land-based salmon facility outside Molde, Norway, with the first construction phase costing around NOK 1.3 billion (€126 million/$153 million). It will have a 7,900-metric-ton capacity.
Salmon Evolution also recently announced plans to build a 20,000-metric-ton land-based salmon facility with South Korean seafood giant Dongwon, under the name K Smart Farming.
Salmon Evolution will put NOK 200 million (€19.5 million/$23.5 million) into the South Korean company.
The salmon farmer, listed on Oslo's Euronext Growth, reported progress in both time and cost for the Norwegian facility, and is planning the release of its first smolt in March 2022.
The need for capital in Norway will be slightly lessened as a result of the equity issue, Salmon Evolution Chairman Tore Tonseth told IntraFish, since the buffer, which was originally NOK 100 million (€9.7 million/$11.7 million), can be lowered slightly.
The company's available cash was NOK 648 million (€62 million/$75 million) at end of December, and the group received NOK 96.8 million (€9.3 million/$11.2 million) from the state-owned firm Enova for the ongoing construction of its Norwegian facility.
The brokerages DNB, Pareto Securities and Sparebank 1 Markets are financial advisers for the company.