Price collapse continues: Investment banks downgrade and warn of a share issue in Atlantic Sapphire

Aslak Berge

In free fall after new production problems.

After the share price almost halved in value on Monday, the price drop continues on Tuesday. In the first half hour after the stock market opened, Atlantic Sapphire’s share price is down 16 percent.

Pareto Securities downgrades its recommendation on Atlantic Sapphire to hold from buy with a new price target of NOK eight, while Fearnley Securities downgrades to sell from buy with a price target of NOK four.

This is evident from updates on Tuesday according to TDN Direkt.

Source: Infront

Read also:  Increased financing risk after new operating problems

Pareto reduces its estimates for the period 2022-2024 and includes the expectation of a share issue of 50 million dollars in 2023.

Fearnley Securities, for its part, sees a share issue of $150 million (€152.5 million) to finance investments in Atlantic Sapphire’s phase 2 project and “cash burn” until EBITDA becomes positive.

A share issue of this magnitude will dramatically dilute today’s shareholders. Atlantic Sapphire has a stock market value of NOK 888 million (€88.8 million) on Tuesday morning.

Almost 8.3 million Atlantic Sapphire shares were traded on Monday, and there have only been three days with higher volume in the share previously. According to Finansavisen, large sales orders can be linked to forced sales.


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