Gigante Salmon upsizes private placement, raises €22 million

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More cash after “strong interest from high-quality institutional investors”.

On Wednesday, it was reported that that the land-based salmon farmer was raising capital ahead of a private placement.

The fundraising began on Wednesday, but as early as Thursday evening the company said that interest had been so strong that the limits for the share issue have been expanded by EUR 3 million, raising EUR 22 million.

Furthermore, investment bank Nordea Investment Management has subscribed for and will be allocated offer shares for EUR 3 million.

The managers informed the company that the transaction is oversubscribed at the new offering size.

The net proceeds of the private placement will be used to fund projected investment and working capital needs for the construction and operation of the land-based salmon farming site on Lille Indre Rosøy, Northern Norway.

The company holds licenses for 13,731 tonnes (MAB) with targeted production of approximately 5,300 tonnes in phase 1 and 16,000 tonnes in full production.

Gigante Salmon is targeting an ambitious production cost of EUR 2.4/kg.