Flow-through system salmon farmer has engaged the services of investment bank ABG Sundal Collier in the hunt for money.
Andfjord Salmon, which is currently listed on the OTC list for unlisted shares, also plans to list the stock at the Oslo Stock Market’s Merkur Markets. The first trading day there will be 22. June.
The share price is set at NOK 40 per share, which gives the company a valuation at almost EUR 114.4 million – before the fundraising.
On Monday, Andfjord shares’ were last traded at NOK 47.50 – after a 13.6 per cent fall on the same day. The share price is therefore at a discount of 15.8 per cent from last trading.
Despite a COVID setback, Andfjord Salmon is now on track with its building plans in Kvalnes, Norway. Founder Roy B. Pettersen’s business idea is to produce thousands of tonnes of salmon in a closed-sea facility filled with cold, lice-free seawater. Andfjord Salmon has previously communicated externally that the long-term plans include a total production of 60,000 tonnes of fish per year, own smolt production and harvest plant. Today, the company has a licence for 10,000 tonnes of salmon per year.
— Hans Ø. Haukeli (@hhaukeli) May 19, 2020
Some existing shareholders of the company have committed to subscribe for shares for a total amount of EUR 1.9 million in the private placement. In addition, three “cornerstone investors”, on certain terms, have committed to subscribe for shares as follows: (i) DNB Asset Management has committed to subscribe and award shares for EUR 1.9 million; (ii) Nordea Investment Management has committed to subscribe and award shares for EUR 1.9 million; and (iii) Toluma Norden has committed to subscribe for shares for EUR 953,000 and awarded shares for a minimum of EUR 762,400.
The net proceeds from the private issue will primarily be used to invest in the company’s closed-sea facility as well as in expansions.
The book building process starts today, 10 September. June, and ends tomorrow. The minimum subscription in the issue is 100,000 euros.