Andfjord Salmon wants to accelerate work at Kvalnes by six months. Photo: Andfjord Salmon.

Andfjord raising fast cash to fast-track salmon farm

Norwegian on-land salmon farm developer Andfjord Salmon has announced plans to sell between 1.5 million and 2.1 million new shares to fast-track the second phase of its facility at Kvalnes on the island of Andøya by six months. 

Published Last updated

The work will increase capacity from 1,000 tonnes to 10,000 tonnes, and is being undertaken after a decision to delay stocking of smolts in the first 1,000-tonne capacity pool until next spring presented an opportunity for increased construction.

The subscription price and total number of shares issued in the privatebplacement will be determined following an accelerated bookbuilding process which began today at 3.30pm GMT and will close at 7am GMT tomorrow, December 2.

Andfjord said some existing shareholders had collectively pre-committed to subscribe for shares for up to NOK 40 million (£3.4m), where primary insiders have pre-committed to subscribe for shares for up to NOK 16.5m.

€100,000 minimum

The placement will be directed towards Norwegian and international investors, with the minimum application and allocation amount set to the NOK equivalent of €100,000, although the company retains the discretion to allocate below that amount.

Andfjord is blasting pools into the bedrock on Andøya to create a farm a patented seawater flow-through technology that it claims combines the benefits from traditional ocean net-pens and land-based salmon farming.

Through water intake at different depths and filtering systems, the design is said to alleviate well known biological issues, such as lice and algae.

70,000-tonne target

The company has the land and licences for 10,000 tonnes maximum allowed biomass at Kvalnes, which equates to a targeted production of 12,500 tonnes head on gutted when fully developed.

Andfjord has expansion potential at two other sites on the east coast of Andøya, with ambitions to eventually produce 70,000 tonnes of salmon per annum.