“This is a game-changer for AKVA group.”
In a press release on the Oslo Stock Exchange, aquaculture equipment supplier AKVA group writes that it has has signed a non-binding term sheet with the Norwegian company AquaCon for a potential supply of equipment, engineering and design to a new 15,000 tonnes-a-year land based grow-out facility in Eastern Shore, Maryland, USA.
The final contract, if awarded, is expected to have a minimum value of USD 130 million. The project and AKVA’s deliveries are expected to be completed by 2023. The term sheet is expected to remain effective until 31 December 2020.
AKVA will participate with EUR 3 million in equity in the project if sufficient further financing is achieved and will also provide a convertible loan in the amount of EUR 500,000 as bridge financing until the financing of the project has been completed.
AKVA’s participation in the project is subject to AquaCon obtaining the necessary financing for the project and agreement on a final contract
AKVA group Chief Executive Officer Knut Nesse told SalmonBusiness: “Land-based is at the core of our strategy in the sense that its very important to us. This is a game-changer for AKVA group, we are really stepping up”.
