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Salmon Evolution ditches share sale after price falls

Construction work at Salmon Evolution's site on the island of Indre Harøy, Norway. The first smolts are due in the water next March. Photo: Salmon Evolution.
Construction work at Salmon Evolution's site on the island of Indre Harøy, Norway. The first smolts are due in the water next March. Photo: Salmon Evolution.

Norwegian on-land fish farmer Salmon Evolution has scrapped plans to raise NOK 50 million (£4.3m) by selling new shares in the company because the price of its existing shares is lower than the offer price of NOK 6.0 per share.

Salmon Evolution, which plans to produce more than 30,000 tonnes of salmon annually in a hybrid flow-through / recirculating aquaculture system, had planned the share offer following the successful completion of a NOK 500m private placement at a price of NOK 6.0 per share in March.

In a market announcement today, Salmon Evolution said: “Following the Board of Directors' conditional resolution to carry out a subsequent offering, the price of the share has, for an extended period and with substantial volume, traded below the subscription price in the planned Subsequent Offering.

“Existing shareholders wanting to avoid or reduce the dilutive effect of the Private Placement have had the opportunity to purchase shares in the open market at prices below the subscription price in the Private Placement and the contemplated Subsequent Offering.

“The Company has therefore resolved to cancel the Subsequent Offering.”

Shares in Salmon Evolution closed at NOK 5.85 on Friday and opened today at NOK 6.02.