Cargill invests US$5 million in Salmon Evolution.
Norwegian land-based salmon farming company Salmon Evolution has announced that it has entered into a strategic partnership agreement with leading supplier of salmon feed Cargill.
Under the agreement, Cargill will supply 100 per cent of Salmon Evolution’s feed volumes for the Indre Harøy facility which is scheduled to commence production in March 2022.
According to a press release issued by the company, Cargill has further committed to allocate significant resources and R&D capacity with the purpose of developing sustainable feed solutions tailored to Salmon Evolution’s operational targets.
In connection with the agreement, Cargill will also invest approximately US$5 million in Salmon Evolution, by way of a private placement of new shares to be issued, with a subscription price of NOK 7.71 per share which equals the volume weighted average price the last 20 trading days (the “Private Placement”). The proceeds from the Private Placement will be used for general corporate purposes including evaluation and development of future expansion opportunities, further underpinning Salmon Evolution’s strategy of taking a lead role in the global land-based salmon farming industry.
Håkon André Berg, CEO of Salmon Evolution said “Having the best possible feed is essential for every salmon farmer. Particularly, in our HFS system where we create optimal and stable living conditions for the salmon, we see a strong and untapped potential in tailoring a feed focused on maximizing biological performance and product quality.”
“Given Cargill’s solid reputation and track record as a supplier of high-performance feed solutions, combined with their substantial R&D capabilities and capacities both in Norway and abroad, we are confident that we have found an ideal partner.”
Fredrik Witte, Managing Director of Cargill Aqua Nutrition, North Sea said: “Cargill works with salmon farmers around the world, providing feed that supports fish welfare and improves farmer productivity and earnings potential, while reducing the environmental impact of aquaculture. One of the key areas to realizing the massive potential in land-based salmon farming is having optimal feed tailored to the salmon’s specific living environment – and we’re committed to working with Salmon Evolution to help them realize this potential.”
In connection with the agreement, Cargill will also invest approximately five million dollars in Salmon Evolution, through an issue of new shares to be issued, with a subscription price of NOK 7.71 per share.
Through the issue, Salmon Evolution will print 5,541,374 new shares subscribed for by Cargill’s Norwegian subsidiary EWOS. The private placement entails a deviation from the existing shareholders’ preferential rights.