Salmones Camanchaca to receive $30m capital injection to speed recovery from algal bloom

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Owner Camanchaca will support the capital increase proposed by the board of its subsidiary Salmones Camanchaca

On Wednesday, The board of seafood processor Camanchaca, reported that it will support a capital increase of up to US$30 million proposed by the board of its subsidiary, Salmones Camanchaca.

In a press release, the board explained that the purpose of this increase is to sustain a greater diversification towards sites locations with higher levels of water flow in the XI region, the incorporation of new technologies and risk mitigating structures at the sites, the recovery of the biomass lost in during at the beginning of the year 2021, and the maintenance of a robust financial balance.

Read more: Algal blooms wipe out Salmones Camanchaca profits

The general manager of Camanchaca Ricardo Garcia Holtz said, “Our subsidiary has attractive investments that seek to diversify the locations of its cultivation centers and provide them with more sustainable and risk mitigating technologies, which, added to the reconstruction of biomass lost by the Blooms from early 2021 make it attractive and convenient to raise capital, and also underwrite it.

“As is public knowledge, the last few quarters have been challenging for Salmones Camanchaca as a result of the pandemic and blooms, but today demand and prices have good prospects, and we believe that there is a good plan to diversify and mitigate inherent risks of the crop. For this reason, we welcome the capital increase and we will subscribe everything that corresponds to us, without ruling out buying more shares if they are offered to us ”.

The capital increase proposed by Salmones Camanchaca, which would be close to 10 per cent of the company’s value, will be presented at an Extraordinary Shareholders’ Meeting of the aforementioned subsidiary on October 18.