Proximar will raise €25 million in convertible bonds

Aslak Berge

Needs more money to complete the land-based fish farming facility in Japan.

As of 1 September, approximately 67 percent of the construction work had been completed. The first release of fish is planned during October, with the first harvest in mid-2024, Proximar Seafood stated.

Recent currency effects have increased the estimated investment cost by approximately NOK 15 million (€1.5 million), while the total estimate for project costs has increased by a further NOK 55 million (€5.5 million) to approximately NOK 1,425 million (€142.5 million), as a result of increased costs for feed, electricity and financing, as well as currency effects. NOK 690 million (€69 million) has been invested so far.

Proximar’s total remaining financing needs for Stage I production are estimated at NOK 735 million (€73.5 million), of which NOK 190 million (€19 million) fall due in October in connection with the takeover and start of operations. A further NOK 110 million (€11 million) is needed to secure funding until the end of March 2023, bringing the total funding need to NOK 300 million (€30 million).

Share price Proximar Seafood last two years. Source: Infront

The convertible bond is structured as a three-year subordinated convertible bond with a conversion price of NOK six per share and a coupon of seven percent. If the company makes an issue of more than NOK 50 million (€5 million), the bondholders have the right to convert to a lower redemption if the rate in a possible issue is set lower than the conversion rate of NOK six.

Existing key shareholders have indicated an interest in participating, and have pre-subscribed for more than NOK 150 million (€15 million). In addition, approximately NOK 50 million (€5 million) will be brought in by increasing existing debt financing from JA Mitsui Leasing. Companies have agreed with the guarantors to extend the term of the debt to 31 March 2024, with a possible extension to the end of 2024.

The remaining capital requirement of NOK 435 million (€43.5 million) to complete the first construction stage is expected to be solved through a combination of long-term debt with Japanese banks, and a smaller issue closer to the project’s completion.


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