Land-based salmon farmer secures additional $9m as costs spiral, plans share issue for remainder

Costs for Gigante Salmon’s new facility have risen by more than $18 million in recent months.

Norwegian land-based farmer Gigante Salmon has secured half of the required additional funds for its farm in Rodoy through a long-term lease arrangement with SpareBank 1 Finans Nord-Norge, the company announced on Wednesday.

Read more: Spiralling costs mean Gigante Salmon’s land-based farm will now top $60 million

The facility’s construction costs have surged by NOK 200 million ($18 million) in recent months due to general price hikes and modifications for fish welfare, bringing the total cost to NOK 645 million ($59 million), the company announced in September.

To finance the remaining extra costs, Gigante plans a private placement of new shares, with main shareholder Gigante Havbruk expected to subscribe for up to NOK 100 million ($9 million).

Despite a delayed smolt release, the company expects its first harvest by end-2024.

The land-based producer anticipates a production of 3,000 metric tons of salmon initially, aiming for 20,000 metric tons by 2027. Besides its Rodoy facility, Gigante owns a site at Feoya Island in Gildeskal, Norway.


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