Iceland land-based company raises additional €6m

The Icelandic salmon farming company Laxey has successfully raised €6m (just over £5m) in a new issue which has attracted a number of Norwegian investors.

Laxey is building a land salmon farm in Vestmannaeyjar, off Iceland’s south coast, said the capital increase will be used to start preparations for the second phase development.

“Phase two will add 4,500 tonnes of salmon production to the 4,500 tonnes already fully funded in phase one. In total, the aim is to build up the next generation in six equal phases,” said the announcement.

It also said that the decision to go for a share capital increase was made due to the interest of investors.

The company added: “The decision to go for this share capital increase was made due to the great interest of investors following the company’s six billion share capital offering in April this year.

“New powerful shareholders have now joined, including Farvatn Private Equity and Kontrari, two Norwegian family companies with a lot of experience in investments related to fish farming.”

The Norwegian investment bank Arctic Securities was the coordinator of the share offering, while Mar Advisors are the financial advisors for Laxey.

Meanwhile, the first batches are thriving in the hatchery and Laxey said the construction is progressing according to plan.

The hatchery has been operational since November last year and the first two batches are performing well.

The facility will be fully commissioned this month, with a total production capacity of four million 100g smolt per year.

Progress also remains on schedule for the grow-out site, utilising a hybrid-flow-through technology, benefiting from the favourable local conditions with respect to biosecurity and building cost.

The first grow-out tanks were erected late June, and the facility will be ready for smolt insert in the autumn.