Gigante Salmon is targeting ambitious production cost of EUR 2.4/kg.
Gigante Salmon has engaged SpareBank 1 Markets and SpareBank 1 Nord-Norge as joint lead managers and bookrunners to advise on and effect a contemplated private placement of new shares raising gross proceeds of up to EUR 20 million, through issuing 34.9 million new shares.
The price per share in the private placement has been set to NOK 5.50 which is equivalent to a pre-money equity value of the company of EUR 35 million.
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 landbased 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.
The site will use a flow-through technology with raceways, designed to optimize fish welfare, sludge handling and project economics.
Construction of the first facility is scheduled to start in the second half of 2021 with the introduction of smolt in 2023 and the first harvest in late 2024. Gigante Salmon is targeting an industry-leading capex level of EUR 2.4/kg at full production.
Gigante stated that it has encountered “strong investor interest” in investor meetings, and has received advance drawings of EUR 8 million, from T. Kolstad Eiendom, Torgnes, Helgeland Invest and Middelborg Invest. In addition, certain investors have subscribed, depending on a successful share issue, for EUR 6 million.
This means that cornerstone investors have subscribed for 74 per-cent of the share issue amount.
The bookbuilding period in the private placement will commence today, 23 June and close on 25 June.
Gigante Salmon has applied for a Oslo Stock Exchange listing.