Cash-strapped Proximar finds enough money to stay afloat in short term
Financially-challenged salmon farmer Proximar, which owns a recirculating aquaculture system (RAS) facility near Mount Fuji in Japan, today said it has raised enough money to keep its head above water in the immediate future.
“Through targeted cash management measures, including extended payment terms with suppliers and accelerated collection of receivables for harvested and sold fish, the company has improved its short-term liquidity position,” Proximar said in a stock market update.
“These measures are expected to secure the company’s liquidity for the coming few weeks, while discussions with key stakeholders are still ongoing.”
Debt-to-equity plan
Proximar said the main longer-term solution under consideration includes a conversion of all financial indebtedness of the parent company (Proximar Seafood AS) into equity, combined with a private placement of new equity and a subsequent repair issue directed to the shareholders.
The company said it continues to be assisted by its financial advisor, ABG Sundal Collier, and will keep the market informed as the situation evolves.
