First Water secures €24 million share capital increase, advances land-based salmon build-out.
First Water has completed a €24 million share capital increase to support expansion of its land-based salmon farming project in Þorlákshöfn, Iceland.
The company said most of the funds came from new investors, including three Icelandic pension funds, bringing to eight the number of the country’s ten largest pension funds that are now shareholders. Investment company Stoðir remains the largest shareholder.
First Water said it has raised €185 million in equity to date and secured about €80 million in construction financing through arrangements with Arion Bank and Landsbankinn announced late last year, taking total financing to €265 million.
The first of six development phases at Þorlákshöfn is nearing completion. It includes eight closed 25-metre tanks, and the company has begun harvesting and exporting salmon weighing 5 kg and above to buyers in the United States and Europe. Preparations are under way for the next phase, based on 28-metre tanks, which is expected to double annual capacity from 5,000 to 10,000 tonnes HOG.
First Water said it is among the first land-based aquaculture companies to produce and market 5 kg salmon. The on-site processing facility in Þorlákshöfn packages fish for export.
The company now targets total site capacity of about 60,000 tonnes per year at full build-out, higher than an earlier plan of around 50,000 tonnes. Once the first two phases are fully operational, annual capacity is expected to reach about 20,000 tonnes, with phase two scheduled to complete in 2028.
“This capital increase marks an important milestone in First Water’s ongoing development in Þorlákshöfn and enables the company to continue expanding and advancing its operations of its land-based salmon facility,” said CEO Eggert Þór Kristófersson. “Our experience with salmon farming in closed 25-metertanks has been excellent, and customer response to our 5 kg salmon has far exceeded expectations. We have already sold approximately 2,200 tonnes of premium land-based salmon.”
ARMA Advisory acted as financial adviser on the share capital increase.
