Norwegian cod farming company Norcod announced on 13 April it is seeking a private placement of new shares seeking gross proceeds between NOK 125 million and NOK 175 million (USD 12.1 million and USD 16.9 million, EUR 10.9 million and 15.3 million).
The company announced it is contemplating a private placement on the Oslo Børs, and said that the offer price for the private placement “will be determined through an accelerated bookkeeping. ABG Sundal Collier, which has worked with Norcod in past private placements, will serve as the sole bookrunner.
The net proceeds, Norcod said, will be used to increase biomass at the company’s facilities in line with its farming plans, develop new farming locations, and for “general corporate purposes,” the company said.
Along with the announcement of the private placement, Norcod gave a trading update in advance of the release of its Q1 2023 report, which the company said will be released on 1 June. Preliminary numbers from the company indicate its Q1 2023 harvest volume reached 3,362 metric tons (MT) whole fish equivalent, with 4,279 MT of fish in the sea. Unaudited revenue was NOK 111 million (USD 10.7 million, EUR 9.7 million).
The company also mentioned the “accelerated harvesting” it has been forced to undertake after Norway’s Directorate of Fisheries discovered sexually mature cod at the company’s Frosvika, Norway facility. The company said that the harvests would cause a significant drop in its earnings and increase its expenses, with an effect on cashflow.
In addition to the private placement, Norcod said it is in discussions with partners and potential financing providers to “strengthen the company’s liquidity position” in an effort to finance further growth.
Photo courtesy of Norcod
