The capital raise was subscribed almost entirely by new shareholders to the company and counted more than 25 investors.
Icelandic land-based salmon farming company, Laxey has successfully completed a €40 million Equity Private Placement, thereby finalizing the funding of its first section of 4,500 metric ton facility.
The funding round was led by Blue Future Holding, which is a part of German family-owned conglomerate EW Group.
Other strategic investors include Norwegian salmon distributor Seaborn, Skretting-parent company Nutreco, former Arnarlax chairman and board member Kjartan Olafsson and an unnamed Dutch industrial seafood company, which was joined by a group of financial investors including amongst others Almenni pension fund, Festa pension fund, Westman Islands pension fund and Snaebol.
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The capital raise was subscribed almost entirely by new shareholders to the company and counted more than 25 investors. Blue Future Holding will hold a board seat in Laxey while Kjartan Ólafsson, is nominated to the board.
The company’s development is well underway, with the hatchery already operational with two batches performing well, according to a press release from the company on Monday.
Laxey’s new facility is on track for completion and set to begin operations in autumn 2024. Located on the Westman Islands, the facility boasts a capacity of 4 million fish and employs hybrid-flow-through technology, capitalizing on favorable local natural and construction cost conditions.
In its early stages, Laxey plans to use excess tank capacity in the grow-out section for post smolt production aimed at external sales, in addition to its primary production for human consumption. This strategy will allow for increased production in sea pens and help reduce issues related to lice, benefiting the traditional farming industry.
The development has been primarily financed by the local Óskarsson family, and recently, Laxey has welcomed a diverse group of new investors from the international salmon industry. This addition strengthens the company’s financial base and supports its growth ambitions. With the closure of this funding round, Laxey has raised in excess of €80 million.
Lárus Ásgeirsson, chairman of the board of LAXEY, expressed enthusiasm about the investor support and the progress of the facility. “This capital increase and ongoing developments underscore our commitment to sustainable aquaculture, building industry on the Westman Islands, and further enhancing the salmon industry in Iceland,” he said.
Arctic Securities served as the Sole Global Coordinator and Bookrunner for the private placement, while Mar Advisors provided financial advisory services to Laxey.
