Atlantic Sapphire, the Florida-based land-based salmon producer, saw its shares plummet, falling 55% from NOK 0.20 on Wednesday to NOK 0.098 (latest trading price as of Thursday morning.)
The sharp decline came after more than 6.4 billion new shares were released into the market as part of a recent rights issue.
The share price now sits below the issue price of NOK 0.1, at which the company recently raised $60 million in fresh capital.
Atlantic Sapphire has faced significant operational and financial challenges throughout 2024. In the first half of the year, the company harvested 2,395 tonnes of salmon with an average weight of just 1.4 kg. This was below expectations due to bottlenecks in the water treatment system, limiting feeding capacity and resulting in smaller fish.
The company has taken steps to address these issues, including reducing the number of fish in its tanks and initiating measures to increase feeding capacity. However, Atlantic Sapphire has acknowledged that further investment is crucial to unleashing its potential.
To fund these improvements, the company recently raised $60 million through a rights issue and secured a convertible loan of $20 million, with significant support from investors like Condire Management and Strawberry Capital. Atlantic Sapphire aims to use these funds to remove operational bottlenecks and improve performance, targeting a positive EBITDA by Q4 2025.
In its long-term plan, Atlantic Sapphire expects its optimized Phase 1 facility in Miami to produce 8,250-8,750 tonnes annually, with EBITDA projected at $1.5-2.0 per kg. The company also plans a Phase 2 expansion, aiming to increase annual production to 25,000 tonnes with an EBITDA of $5 per kg.
