Atlantic Sapphire is after more cash as break even date delayed

In an announcement to the Oslo Stock Exchange, Atlantic Sapphire said the company will not be in profit until 2026. It is planning another share issue in the second part of this year. Atlantic Sapphire shares dropped on the announcement.

The company also said, however, that it has “…set the stage for increased harvest size and revenue growth.”

The stock market announcement said: “Over the past 18 months, the operational performance has significantly improved with stable water temperature, water quality, and very low mortality.

“Based on this, the company is on track to deliver on its short-term strategy to produce high quality salmon with gradually increasing harvest weights over the coming months.

“Following earlier announcements, the short-term focus has prioritised larger harvest sizes with a reduction of number of fish per batch.

“Even though the operational performance is seeing continuous improvements, the biomass adjustment has delayed the timing of EBITDA break even, which is now based on our latest production plans delayed beyond Q4 2025.

“The second stage of our strategy is now being implemented and will lay the ground for gradually increasing volumes through increased feeding capacity."

Atlantic Sapphire also said these operational improvements provide a strong foundation for the company’s current activities and planned expansion into Phase 2.

Preparations for Phase 2 are advancing, it said, and the company plans to complete a capital raising exercise in the second half of 2025.

It explained: “This funding will allow us to resume construction of Phase 2 and set the company up for annual production of 25,000 tons of salmon once Phase 1 and Phase 2 are fully operational.”