Grieg-backed land based salmon farmer Proximar saw its share price fall 10 percent on Tuesday amid reports the company is preparing to take out a bond loan.
The newspaper Finansavisen reported on Tuesday that the company has engaged ABG Sundal Collier and Nordea Markets for the financing.
According to market participants cited in the newspaper, it is likely that the interest rate on the loan will be high because the company will have no income until 2024.
In a stock exchange announcement last week, Proximar said the two brokerage houses are engaged, and that investor meetings will be arranged this week and next week. It has not said how large a loan it needs.
Prior to the listing, the company stated, according to Finansavisen, that it had planned investments of NOK 915 million (€91.1 million/$109.7 million) and a total capital requirement of NOK 1.28 billion (€127.5 million/$153.5 million).
This was to be financed through a share issue of NOK 400 million (€39.8 million/$48 million) -- which has been completed -- a seller credit of NOK 85 million (€8.5 million/$10.2 million) and bank loans from Japanese banks.
According to the company's annual report, which was published on Tuesday morning, it is in talks with two Japanese banks about the loan, but "a number of issues must be resolved before an agreement is in place."
Proximar Seafood, plans to build a land-based salmon farm at the foot of Mount Fuji in Japan.
The company was listed on the stock exchange on Feb. 3 at a price of NOK 16.20 (€1.60/$1.90).
The share fell 10 percent on Tuesday to NOK 9.80 (€0.98/$1.20), which also corresponds to a decrease of 39.5 percent since its initial listing.
The company's market cap is currently valued at just under NOK 390 million (€38.8 million/$46.8 million).
In March, Proximar Seafood entered into a contract with Japan's Daiwa House Industry to build the facility. Construction started at the end of the first quarter.
Israeli company AquaMaof will supply the RAS facility. The first phase is to have a production capacity of 5,300 metric tons.