Norcod's Frosvika site, Meløy, Norway. Photo: Norcod.

Cod farmer raises £15m with private share placement

Norwegian cod farmer Norcod has raised NOK 175 million (£15m) through the private placement of new shares.

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Norcod yesterday successfully placed an allocation of 2,187,500 offer shares at a subscription price of NOK 80 per share. An extraordinary general meeting will be held later this month to approve completion of the share placement.

The fish farmer said the net proceeds from the placement will be used to increase biomass in accordance with its production plan, develop two new locations, and for general corporate purposes.

Norcod is on target to have harvested 5,000 tonnes by April. Photo: Norcod.

5,000 tonnes by April

Norcod, which is listed on Oslo’s Euronext Growth market, farms at locations in mid-Norway, a region which it says offers ideal conditions for its fish.

From the start of its first commercial harvest in mid-August 2021 to the end of the fourth quarter, Norcod harvested 1,393 tonnes, which represents over 85% of the total volume of cod harvested in Norway. Turnover in Q4 was NOK 46.5m.

Norcod is continuing the slaughter of its first batch of farmed cod until April this year and is on track to meet its harvest target of 5,000 tonnes.

Good prices

It now has four locations with 14 licences and a total maximum allowed biomass of 10,320 tonnes.

In December, chief executive Christian Riber said: “We have managed to get good prices in several different markets and also through the wild cod season we are entering now. Therefore, we can also say that we have managed to separate our cod from wild-caught cod.”