Mount Fuji farmer raises additional £10 million

Proximar Seafood, the company behind the Mount Fuji, Japan, RAS Salmon farm project, has successfully raised a further NOK 140 million (almost £10.5m)  in fresh capital, an Oslo Stock Exchange announcement confirmed last night.

The company said it was “pleased to announce that the board of directors of the company has conditionally allocated 70 million new shares in the Private Placement each at a subscription price of NOK 2.00 per Offer Share  raising gross proceeds of NOK 140 million.

The issue is subject to approval at an extraordinary general meeting which will be held in early January.

The deal was completed shortly before midnight last night and some of the company’s largest shareholders had already committed around NOK 46 million.

Proximar said the  income from the issue will be used to cover increased operating costs, financial costs and capital investment needs. 

CEO Joachim Nielsen said in update two months ago: “The fish are performing well and growing better than expected. 

“This supports the quality of our production facility and chosen technology, operational structure, and fish farming competence.

“The water quality remains good and stable, which we now see turning into good growth performance. This is very encouraging.” 

Potentially, the Proximar project of producing and selling Atlantic salmon in Japan, a country with an insatiable appetite for such salmon,  and next to the country’s iconic mountain, is an exciting one.

But construction and other costs have risen sharply over the past inflation dominated year.

The company said it has currently seven batches in production, showing strong growth curves ahead of expectations. First transfer of fish to the post smolt grow-out facility is scheduled in Q4 2023, in accordance with plan. 

The targeted long-term harvest level for Proximar is 5,300 tonnes (Head on gutted) a year in Phase One.