Land-based salmon farmer Atlantic Sapphire's share price fell 33 percent on Friday after the company reported major losses during the first half of the year, with suboptimal growing conditions continuing to affect its US operation.
The company also reported on Thursday that it is now having difficulty obtaining oxygen for its fish tanks, which could impact the full-year's harvest, although a stock exchange release Monday indicated this particular problem was now solved.
Friday's stock price slide wiped $250 million (€212 million) off the company's market capitalization in a single day, a seemingly recurring event each time the company reports an operation update.
Since hitting a peak of NOK 150 (€14.56/$17.17) in early February this year, the company's share price has plunged to NOK50.2 (€4.87/$5.74) at Friday's closing bell, slashing more than $1 billion (€848 million) off its market capitalization in the process.
The downward share price trend has not been kind to investors.
Runar Vatne, Atlantic Sapphire board member and one of Norway's 400 richest people, so far this year have lost more than NOK 320 million (€31 million/$37 million) on his investment in Atlantic Sapphire.
The owner of Johan Johannson, Norway's largest grocery chain is also struggling with his investment in the fish farming company. Joh Johannson Eiendom has lost NOK 120 million (€12 million/$14 million) so far this year. His family owns 1.87 percent of the fish farming company.
Lani Invest, which is owned by Block Watne heir Lars Nilsen, has also lost NOK 85 million (€8.3 million/$9.7 million) so far this year. Nilsen's company controls 1.32 percent of the shares in Atlantic Sapphire.
Arctic Securites broker Alexander Borgen and his company SP Capital 22 lost close to NOK 26 million (€2.5 million/$3 million) on the land-based fish farming company investment.
Setbacks continue
Among a string of setbacks for Atlantic Sapphire, the global COVID-19 pandemic has created issues with acquiring enough oxygen for its fish tanks, resulting in the company harvesting smaller fish and, at times, even pausing feeding the fish to conserve oxygen.
In March, it reported the loss of 500 metric tons of fish at its Miami salmon farm, which it blamed on a "weakness" in the recirculating aquaculture system (RAS).
The company said in a financial report an "identified design weakness from its RAS supplier resulted in elevated turbidity and possibly gasses that caused abnormal fish behavior."
In April, Atlantic Sapphire dropped Danish recirculating aquaculture system (RAS) technology supplier Billund Aquaculture as its main supplier for the second phase of development of its facilities in Miami.
On the plus side Atlantic Sapphire harvested nearly 29 percent more fish during the first six months of 2021 than it did during all of 2020.
The company produced 1,275 metric tons of head-on, gutted (HOG)salmon in the first six months of 2021, up from the 989 metric tons produced in 2020, despite fish losses at both its Miami Bluehouse and Danish facility this year.
Atlantic Sapphire CEO Johan Andreassen, interim COO Bjorn-Vegard Lovik and board member Andre Skarbo all bought shares in the company during Friday trading.
