Atlantic Sapphire handed another $10m loan to stay afloat
United States land-based salmon farmer Atlantic Sapphire is to receive an additional US $10 million (£7.6m / NOK 99.3m) bridging loan from an investor group that owns the majority of its shares.
Condire Management L.P., Nordlaks Holding AS, Nokomis Capital Master Fund
L.P., Strawberry Capital AS, and Joh. Johannson Eiendom AS – jointly called the Investor Group – have already provided a $10m bridging loan and have agreed to lend the same amount again, under the same terms.
In February, Atlantic Sapphire, which farms fish at Homestead, south of Miami, Florida, stated that it needed $15-25m to meet liquidity needs. This was later updated to $25-30m.
Mandatory offer
The second bridge loan is intended to be settled through set-off against the
Investor Group’s subscription commitment to the $10m tranche of the
previously announced private placement of up to $16m.
The Investor Group has also agreed to utilise its right under a restructuring agreement to transfer all of their Atlantic Sapphire shares into Coral HoldCo AS ("Coral Holding") by way of a capital raise in Coral Holding. Coral Holding is a holding company established by the Investor Group for the purposes of the refinancing of Atlantic Sapphire.
Following transfer of shares, Coral Holding intends to make a mandatory offer for all the shares in the company that it does not already own. The mandatory offer replaces a previously announced contemplated voluntary offer and is intended to be made on the same terms.
