Cost overruns see land-based farmer searching for $15 million in extra funding
Total additional funding requirement is estimated at $14.8 million.
Japan-based land-based salmon farming firm Proximar has issued a warning regarding its increased financing requirements in the coming period.
In its Q3 presentation issued on Friday, the company noted a capital expenditure increase of NOK 1,240 million, up from NOK 1,195 million in the second quarter.
The total increase in 2Q and 3Q is in excess of NOK 90 million ($8 million), according to the report.
This increase is attributed to factors such as rising feed prices, allocation of extra costs related to the operational readiness and start-up of a grow-out building, VAT financing, and the inclusion of a buffer for OPEX assumptions.
Proximar also expects financial and transaction-related costs, including expenses for financing and legal fees, to amount to NOK 30 million ($2.7 million).
To address these additional capital needs, Proximar is exploring various funding options and is seeking to establish an optimal capital structure, potentially involving debt financing.