The combined funds from the rights issue, loan, and other financial arrangements, are expected to cover the company’s financial needs through to achieving positive EBITDA for Phase 1 by Q4 2025.
Land-based salmon producer Atlantic Sapphire has announced plans for a fully underwritten rights issue to raise up to $60 million and a directed convertible loan issue of at least $20 million.
The proposed rights issue, subject to approval at an Extraordinary General Meeting (EGM) scheduled for September 17, 2024, will offer existing shareholders the opportunity to subscribe to new shares at a proposed price of NOK 0.10 per share. Each subscriber will receive one warrant for every two shares subscribed, with the potential for additional proceeds from the exercise of these warrants.
The convertible loan, secured with shareholders such as Nordlaks Holding and Condire Management, is contingent on final loan documentation and EGM approval. This loan will also grant participants warrants, similar to those offered in the rights issue.
The combined funds from the rights issue, convertible loan, and other financial arrangements, including amendments to existing debt facilities, are expected to cover the company’s financial needs through to achieving positive EBITDA for Phase 1 by Q4 2025. The Phase 1 optimization is projected to yield 8,250-8,750 tons of salmon annually, with an EBITDA of $1.5-2.0 per kg.
Future proceeds from the exercise of warrants will be directed towards the Phase 2 expansion at the Florida site, with a target to increase annual harvest volumes to 25,000 tons of salmon at an EBITDA of approximately $5 per kg.
Notice of the EGM and detailed proposals for the rights issue and convertible loan are expected to be sent to shareholders on or about August 27, 2024.
Arctic Securities AS and DNB Markets have been appointed as managers for the rights issue, with Advokatfirmaet CLP DA and Advokatfirmaet BAHR AS providing legal counsel.
