Seven land-based salmon farmers are already on the stock exchange. Six of them have fallen heavily in value. Nordic Aquafarms believes the RAS bubble needed a correction.
The crash in Atlantic Sapphire has received a lot of attention, not least in the last week. The price development in the fish farming market leader in Miami has helped to reduce the value of the other land-based fish farmers – and has made it more difficult to raise money for those who have sought opportunities in the equity market.
Read more: Nordea Markets downgrades Atlantic Sapphire; and cuts the price target by 60 per cent
Nordic Aquafarm has chosen a different approach and strategy for financing. In a post on LinkedIn, the company elaborates on its view:
“While numerous new RAS companies rushed to public listing in the past 3-4 years, some without existing operations, Nordic Aquafarms chose a conservative approach and has remained a private company with strong shareholders.”
“Nordic Aquafarms has three RAS farms in operation today without any major production incidents to date and excellent quality products. We have also worked our way through permitting of two major projects in the US, with the one in Maine is now fully permitted. We have taken a phased learning curve approach with gradual upscaling in our locations. We were the first RAS company to bring in a complete in-house design team – NAF Technology in Denmark – to become vendor independent.”
“Repeated negative events in one company out there has resulted in a bloodbath for RAS companies who chose early public listing. We wish them all the best of luck.”
“In panel debates and media we have repeatedly said it is dangerous to rush developments in an emerging industry too fast – these projects are complex, have a learning curve, and require strong interdisciplinary capabilities that need to mature. Cutting corners will come with a high price – especially for those who go big too fast.”
“The RAS market has been hyped in the past 2-3 years with many jumping on the band wagon. Stock prices have soared long before capabilities have been proven in new companies – that tends to generate a bubble in any industry.
“Who is to blame? The investment banks? RAS companies overselling? The investors? As usual it is a combination of the above.”
“This market like any inflated market needed a correction and it has come. For those who have achieved stable operations without incidents, their time will come to implement that at larger scale. Experienced investors always look for strong planning and execution abilities. Those who succeed will see their value soar in time.”
“Nordic Aquafarms’ share price has remained pretty stable for some time – our share prices and thus our value are far less impacted by the market corrections now taking place. Our philosophy has been to mature sufficiently before considering public listing.”
“We continue on our conservative, stable course and never rush things without confidence in what we are doing. We move forward with purpose never expecting it to be easy.”
Read more: Atlantic Sapphire crash worsens;We are in an unprecedented situation
