China-based salmon farmer raises another NOK 350m

Nordic Aqua Partners, the Norwegian company operating a land based salmon farm in China, has raised the equivalent of another £25m in capital, it emerged last night. The development came in a late Oslo Stock Exchange announcement.

Nordic Aqua Partners produces salmon at Ningbo near Gaotang in eastern China and successfully completed its first harvest six months ago, with the first operational harvest of 523 tonnes following a few weeks later.

But in late July the company was forced into a surprise cull after detecting a high concentration of the off-flavour compound geosmin, which is harmless to both fish and humans but can affect the taste of the salmon.

Last night Nordic Aqua Partners confirmed the issue of 4.676 million shares at a price of NOK 75 which brought in a total of NOK 350m.

The company said: “The net proceeds from the Private Placement will be used to, together with indicative debt financing and cash on hand, (i) to fully fund the estimated Stage 2 build out, (ii) to repay short-term debt facility, (iii) for Geosmin improvement capex, (iv) towards working capital build up and (v) for general corporate purposes.”

Nordic Aqua is actively focusing on building market distribution and brand exposure in the current phase. It is particularly prioritising the establishment and development of lasting customer relationships in important premium segments, in order to optimise the value achievement of its premium product, Nordic PureAtlantic.

Located in Ningbo, China. Nordic Aqua describes itself as the first local producer of truly sustainable and super-fresh Atlantic salmon to the Chinese market.

Nordic Aqua Partners, Ningbo site