Barramundi Group placed in stock exchange Recovery Box and Penalty Bench
Oslo-listed fish farmer Barramundi Group has been placed in the stock exchange’s “Recovery Box” and its “Penalty Bench”, the company has announced.
The Recovery Box is a special compartment where the Oslo Børs (stock exchange) can place securities where the issuer – in this case, Barramundi Group - is subject to circumstances that make pricing of the securities particularly uncertain.
The relevant security will remain in the Recovery Box until the circumstances for the allocation to the Recovery Box are no longer present. A handful of other companies are in the Recovery Box, including Norwegian-owned Chile salmon farmer Nova Austral.
The Penalty Bench is a special compartment where the securities of issuers that fail to comply with stock exchange rules are placed.
Oslo Børs will remove a security from the Penalty Bench and allocate the security to the normal compartment when the issuer has corrected the violation of the rules that was the reason for allocating the security to the Penalty Bench.
Fish health
Barramundi Group has struggled financially and with disease at marine pens in Singapore. Last year its Australian division, MPA, which produced most of its fish, was placed in administration then bought by Tassal, a subsidiary of Canadian seafood heavyweight Cooke, Inc.
In February this year Barramundi Group announced that its Brunei operations had secured a funding offer of BND $15 million (£8.8m) from a Bruneian financial institution, subject to finalisation and completion.
The company said the financing would enable the construction of a recirculating aquaculture system (RAS) broodstock and hatchery centre, complementing existing RAS nursery operations, and the immediate deployment of sea cages at the company’s existing sea lease, Pelong Rocks. The deployment was slated for mid-2024.
