Major share issues expected as publicly listed land-based salmon farmers hunt for capital

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Land-based projects must primarily be financed with equity.

“Our base case is that Andfjord Salmon, Atlantic Sapphire and Salmon Evolution will raise equity through a share issue,” said Fearnley Securities’  marine analyst Nils Thommesen to Finansavisen.

Thommesen points out that Atlantic Sapphire has a non-binding loan facility through DNB of just over $98 million, which will go to finance phase 2 in the USA.

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“We see a possible risk that it may be scaled down, given that production at the plant in the US has been postponed due to biological problems at the beginning of 2021. In addition, the company expects insurance payments from Denmark of $33 million, which they should get paid during the first half of 2022,” he added.

Thommesen believes that the company needs more equity, or the investments must be postponed.

“We estimate NOK 600 million (€60 million) in equity for Andfjord Salmon, $100 million for Atlantic Sapphire, and NOK 1 billion (€100 million) for Salmon Evolution divided into two tranches of NOK 500 million (€50 million), the analyst told Finansavisen.