Salmon Evolution has cancelled its planned subsequent offering of up to 11.1 million new shares after the company’s share price traded below the NOK 4.50 (EUR 0.41) subscription price set in its April equity raise.
The land-based salmon farmer said the board had resolved to withdraw the offering, which was originally announced alongside a private placement and retail offering on 29 April.
The subsequent offering was intended to allow eligible shareholders who did not participate in the private placement to subscribe for shares at the same price and thereby reduce dilution.
However, the company’s shares have traded below the NOK 4.50 (EUR 0.41) subscription price since completion of the private placement, allowing investors to acquire shares more cheaply in the market. The board said this removed the basis for completing the offering.
Salmon Evolution raised NOK 400.5 million (EUR 36.4 million) in the private placement announced in April.
The company is developing land-based salmon production at its Indre Harøy facility on Norway’s west coast.