Atlantic Sapphire borrows another US $3m from shareholders
US land-based salmon farmer Atlantic Sapphire today announced that its majority shareholders have agreed to provide another US $3 million loan to improve the company’s liquidity.
Shareholders Condire Management L.P., Nordlaks Holding AS, Strawberry Capital AS, Nokomis Capital Master Fund, L.P. and Joh. Johannson Eiendom AS, known collectively as the Investor Group, together own a majority stake in Atlantic Sapphire through a holding company, Coral HoldCo AS.
$26m in loans
Atlantic Sapphire, which grows its fish in a recirculating aquaculture system (RAS) at its Bluehouse facility in Homestead, Miami-Dade County, Florida, borrowed $10m from the Investor Group in March, followed by a further $10m in June, then $3m delivered in two tranches of $1.5m each in August and early September.
It will now borrow another $3 million from the same investors, taking its nominal debt to the Investor Group to $26m.
At an extraordinary general meeting on September 15, Atlantic Sapphire shareholders approved a capital increase that means that debt under the company's loan will be converted into 1.125 billion new shares at a subscription price of NOK 0.10 per share. This will give Coral HoldCo a 99.03% stake and opens the door to a forced redemption of the outstanding shares.
Atlantic Sapphire has previously stated that the plan is to then apply for delisting of the shares from the Oslo Stock Exchange.
