Latest Norcod share issue falls short

Norwegian cod farmer Norcod has fallen well short of attracting investment from a new share issue which closed late last week.

The company had hoped to net around NOK 16 million (almost £1.2m) from its latest offering of 1,333,333 new shares at a subscription price of NOK 12 per share.

The subscription period for the subsequent offering ended last Thursday afternoon and by the end of that period, the company had received valid subscriptions for approximately 208,823 shares in the subsequent offering. That represents just over 15% of the original target.

The company said the board has now decided that those 208,000 plus shares will be allocated at the offer price, which will raise gross proceeds of NOK 2,505,876 (around £185,000).

The statement added: “Notifications of allocated offer shares in the subsequent offering and the corresponding amount to be paid by each subscriber will be sent out in a separate letter to each subscriber.”

However the company did successfully raise NOK 170 million (12.5m) at a larger share issue a month earlier.

Both issues will be used to finance the company’s working capital and for general purposes.

Norcod AS is Norway’s largest cod farming company in what is a relatively new aquaculture sector.

It produced a strong operational performance at the end of last year, although profits so far remain elusive.

However, Norcod did secure a significant deal with a Chinese distribution company at the beginning of this year.

Its existing fish farms are located in Mid-Norway, which it says presents ideal conditions for cod.