Norcod raises further £12m to fuel growth

The move was completed through a private placement following the allocation of just over 13.7m shares at NOK 12 per share.

The company said, when it announced its Q4 results two weeks ago, that it was planning a major placement.

One of the investors was the Canadian seafood company High Liner Foods, which has been seeking new opportunities in Norway recently.

Norcod said that the net proceeds from the placement, together with the net proceeds from the new debt commitment and operational cash flow, will be used to fund biomass and site investments necessary to reach its 25,000 tonne whole fish equivalent (WFE) annual target harvest capacity.

It adds: “In connection with, and subject to the private placement, DNB Bank ASA is committing an additional NOK 130m (£9.2m) (with possibility to subsequently increase debt commitment up to NOK 150m (10.7m) ) in debt financing to support the company’s growth plans.

“The debt is divided into a term loan and an overdraft facility, where availability of the overdraft facility is subject to certain financial covenants.

The following investors and primary insiders have pre-committed, subject to certain conditions, to subscribe for offer shares, which in total covers the minimum size of the private placement:

• The shellfish business Artha Norcod A/S, the company’s largest shareholder and a close associate of Norcod’s board member Jan Severin Sølbæk (NOK 67m);
• High Liner Foods, the company’s second largest shareholder currently holding approximately 10% of the outstanding shares in the company and a close associate of Norcod’s board member, Paul Jewer (NOK 75m);
• Sirena Group AS, a close associate of Norcod’s board member Boe Romorous Spurre (NOK 8m);
• Christian Riber, Norcod’s Chief Executive Officer (NOK 499,000);
• Jan Severin Sølbæk (DKK 1m);
• Boe Romorus Spurre, Board member in Norcod (NOK 100,000); and
• Berners AS (NOK 3,000,000).

In connection with, and subject to the private placement, DNB Bank ASA is committing an additional NOK 130m (£9.3m) with the possibility to subsequently increase debt commitment up to NOK 150m (£10.7m) in debt financing to support the company’s growth plans. The debt is divided into a term loan and an overdraft facility.