Atlantic Sapphire explains 'material uncertainty' warning by auditor
United States land-based salmon farmer Atlantic Sapphire has issued a "don't panic" message after its auditor warned of “material uncertainty” about the company’s ability to continue operations.
The auditor’s assessment is contained in Atlantic Sapphire’s 2025 annual report, and was written before the company secured new financing.
Atlatnic Sapphire explained that the accounts were prepared on the basis that the company remains a going concern.
“As the going concern statement is conditional upon a planned capital raise in 2026, material uncertainty over the Group’s ability to continue operations exists and therefore the report of the Company’s auditor on the consolidated financial statement and the parent company’s financial statement includes a specification on material uncertainty on continued operations (financial situation),” Atlantic Sapphire wrote in a press release.
The company has since entered into a short-term bridge loan agreement with some of its largest shareholders and convertible loan holders (the “Investor Group”), for an aggregate amount of up to US $10 million, all of which has now been disbursed to Atlantic Sapphire.
No binding deal yet
The salmon farmer added that although it expects to be able to secure long-term financing, it should be noted that no binding agreement has been entered into at this time.
“The Company’s board and its advisors have been in discussions with the Investor Group to secure the necessary liquidity and establish a long-term capital structure for the Company. These discussions are ongoing and continue to progress positively; however, a binding agreement has not yet been signed,” Atlantic Sapphire stated.
“Other than what is being discussed with the Investor Group, the Company has not received any proposal from any party for a viable alternative solution that would resolve the financing requirement in a satisfactory manner.”
Atlantic Sapphire produces Atlantic salmon at its Bluehouse recirculating aquaculture system (RAS) facility in Homestead, south of Miami in Florida.
Phase 1 of the facility has capacity for 7,500-8,000 gutted weight tonnes annually, although the company has never produced that volume in a year. A paused Phase 2 extension project would take capacity to 25,000 gwt.
