Atlantic Sapphire has reported first half revenue of $21.5 million, nearly double year on year, as average prices and harvest weights increased.
The EBITDA loss narrowed to $30.7 million from $46.6 million in H1 2024. Phase 2 construction remains paused, limited to design, engineering and optimisation.
Harvest volumes reached 2,486 tons HOG, up 4 percent versus H1 2024. Average harvest weight rose to 2.86 kilograms in the half and 3.1 kilograms in Q2. The average sales price increased to $8.67 per kilogram, up 88 percent and 86 percent respectively versus H1 2024. The company cited stronger biology, including a 97 percent superior share, lower mortality, improved feeding and steady biomass gain. The equity ratio stood at 66.7 percent at period end, with covenants under the amended credit facility in compliance.
Management guides 2025 harvest of about 5,400 tons HOG, up roughly 25 percent on 2024, and around 7,000 tons in 2026. Under the revised plan, Phase 1 optimisation is expected to lift capacity toward 7,500 to 8,500 tons and deliver EBITDA of $3 to $5 per kilogram once optimised. Near term, the company targets an EBITDA cost of about $10 per kilogram and expects Phase 1 to generate $1 to $2 per kilogram of EBITDA after breakeven.
New convertible loan
To fund Phase 1 through EBITDA breakeven, the company is contemplating a new convertible loan of $31 million to $35 million. Large existing shareholders represented on the board have indicated underwriting support of $25 million, and other investors have provided about $7 million of commitments, taking indicative support to roughly $32 million. A $6 million bridge loan from the same shareholder group is expected to roll into the envisaged convertible.
Indicative terms for the contemplated convertible loan include a five year maturity, 10 percent per annum payable in kind, a conversion price of NOK 10.00 per share, a conversion window starting one year after utilisation, and an incentive that grants one additional share for every three shares issued upon conversion if investors convert within 20 business days following a qualifying equity raise of at least $100,000,000. The company has agreed to exchange Condire’s existing $20,000,000 convertible, plus accrued interest, into the new instrument at 80 percent of outstanding principal plus accrued interest, subject to general meeting approval. Under certain conditions an underwriting fee of 15 percent is payable in kind. Amounts capitalised to principal would include bridge loan PIK interest and origination fee, any underwriting fee and the exchanged portion of the existing convertible.
Conditional on the convertible raise, DNB Bank ASA has credit approved adjustments to the current loan agreement, including covenant changes, release of parts of restricted cash, a new maturity in July 2027 and delayed instalments. DNB Carnegie has been engaged as adviser on the contemplated transaction.
“The first half of 2025 marked a decisive shift for Atlantic Sapphire. Operations are now stable, biological performance is at record levels, and financial results are improving. With harvest weights nearly doubled, superior share consistently high, and prices of $12/kg for our premium Bluehouse product, our platform is now demonstrating its full potential. We have finalized a revised business plan requiring only $3 million of additional capex, with materially lower operating costs. Positive EBITDA is expected by the end of 2026 and will continue improving thereafter. To support this last phase of Phase 1 optimization, we are preparing a flexible financing solution structured to fully fund Atlantic Sapphire through to breakeven of Phase 1 and has the strong backing of our main owners,” CEO Pedro Courard said.
