Norcod looking for investment of up to NOK 175 million

    Norcod will use the investment to fund biomass growth and development of new sites, as it recovers from biological problems in early 2023.

    Norcod has announced it is seeking investment of between NOK 125-175 million for new shares in the company.

    The investment, the Norcod said in its announcement, will be used principally to increase biomass according the company’s production plan, and for the development of two new locations for its operations.

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    Announcing the “Private Placement” investment round, Norcod said the opportunity “will be directed towards selected Norwegian and international investors”.

    The application period for investors opened on 13 April and is due to close today at 4.30pm Central Eastern Time. The minimum investment has been set to the NOK equivalent of EUR 100,000.

    “By structuring the equity raise as a private placement, the Company is expected to be in a position to raise equity efficiently, with a lower discount to the current trading price, at a lower cost and with a significantly lower risk compared to a rights issue,” Norcod said.

    Accelerated harvest put “significant pressure” on operations

    In its statement, Norcod noted that the first quarter had been impacted by biological problems. The company has “initiated accelerated harvesting” which, it said “has led to significant pressure on the Company’s operating expenses and cash flows”.

    Norcod closed its Q4 of 2022 with a net revenue of NOK 51.4 million. Norcod’s Q1 results released thus far show harvest volumes of 3,362 tons and a revenue of NOK 111,670. As of 31 March 2023, the Company’s biomass at sea totalled 4,279 tons.

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    One of Norcod's cod farms. Photo: Norcod.
    One of Norcod’s cod farms in mid-Norway. Photo: Norcod.

    In February, Norcod was forced to harvest early due to the discovery of sexually mature cod at one of its aquaculture facilities in the Nordland region. At the time, the company noted that the accelerated harvest would impact the production plan for its 2021 generation of cod currently at sea. Earnings were expected to drop significantly, while production costs per kilogram of fish were predicted to increase.

    In addition to the Private Placement investment sought today, Norcod says it is involved “in several discussions with partners and potential financing providers to strengthen the Company’s liquidity position and finance further growth.”

    About Norcod

    Norcod AS’ core business is commercial sea farming of cod but through ownership and partnerships is involved in the entire value chain. Norcod’s existing fish farms are located in Mid-Norway with ideal conditions for cod. The company is contributing to blue ocean value creation with minimal impact on the environment while supporting local communities. Norcod is listed on Oslo’s Euronext Growth market.

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