Canadian seafood giant invests in cod farmer

High Liner Foods, one of North America’s leading seafood companies, has bought a stake in the Norwegian cod farmer, Norcod.

The move is an interesting one, because the big Canadian company has not previously been directly involved with aquaculture.

High Liner is mainly a marketer and a processor of value-added frozen seafood, with several retail brands sold throughout the United States and Canada.

Norcod has just expanded its previously announced share issue through private placement by NOK 170m (just over £12m).

The subscription price was set at NOK 12, and on Thursday evening there was confirmation that almost 14.2 million new shares will be issued for gross proceeds of NOK 170m.

The funds are being raised to cover the company’s need for working capital in connection with its ambitions to increase production and slaughter volumes.

Paul Jewer, CEO High Liner

Norcod said High Liner was being welcomed to the company as a new shareholder with over 4.4 million shares. High Liner had earlier announced that it was planning to buy into Norcod to the tune of US $5m.

In exchange for the investment, High Liner Foods will receive an approximately 10% share ownership in Norcod and nomination rights for a director, currently CEDO and President Paul Jewer, to serve on Norcod’s board.

Jewer said: “Today’s investment is a small but important step forward in our strategy to position High Liner Foods for the next chapter of leadership and growth.”

He continued: “We are impressed by Norcod’s leadership team and their proven production record and expertise.  In making this long-term investment, we welcome the opportunity to support, and help shape, the bold, innovative work underway to lead the future of sustainable cod farming as a source of premium seafood for North America and markets around the world.”