Norcod seeks up to £13.5m from share sale
Norwegian cod farmer Norcod has commenced a private placement of new shares to raise gross proceeds of NOK 125-175 million (£9.7m-£13.5m).
Net proceeds will be used to increase biomass in accordance with the company’s production plan, develop two new locations, and for general corporate purposes, Norcod said in a market announcement today.
The minimum application and allocation amount in the private placement has been set to the NOK equivalent of €100,000.
In an accompanying trading update, Norcod said its Q1 2023 harvest volumes amounted to 3,362 tonnes whole fish equivalent.
Pressure on cash flows
Unaudited revenues for the first quarter totalled NOK 111.67 m, and as of 31 March 2023, the company’s biomass at sea amounted to 4,279 tonnes (5,384,000 fish).
Norcod said that during Q1 2023 it had initiated accelerated harvesting which has led to significant pressure on operating expenses and cash flows.
In addition to the private placement, Norcod said it is in several discussions with partners and potential financing providers to strengthen its liquidity position and finance further growth.
The full 2023 Q1 report will be released on 1 June 2023.
