Iceland investor becomes biggest backer of Kingfish Company

The land-based yellowtail producer The Kingfish Company is undertaking a comprehensive financial restructuring that will significantly reduce debt and further strengthen liquidity.

The Dutch company announced on Tuesday that it has raised 21 million euros (£18 million) through a private placement, while convertible loans of around 49 million euros are planned to be converted into shares. 

In addition, changes to the loan agreement have been negotiated with the company’s largest lender, including an extended term until 2029.

As part of the restructuring, the Icelandic investment company Eyrir hf. will join as the new main shareholder. Eyrir will contribute EUR 15 million to the issue and is expected to own around 31.4% of the shares after completion.

Important milestone

“This transaction represents an important milestone for The Kingfish Company,” said Kingfish CEO Vincent Erenst in the stock exchange announcement.

“In recent months, we have worked intensively with lenders, shareholders and new investors to establish a long-term capital structure that supports the further development of the business.”

The restructuring comes after the company previously announced challenges related to compliance with EBITDA requirements in the loan agreements by the end of 2025.

According to chairman Jeroen Scheelbeek, the combination of new equity, debt conversion and renegotiated loan terms will give the company a significantly stronger balance sheet.

Next phase

“The transaction is expected to mark the start of a new era for Kingfish, and provide the foundation to accelerate the next phase of development,” he said.

The company said existing shareholders and early investors are contributing around six million euros to the issue, which the company believes shows continued support for the continued investment.

When LandbasedAQ met with the company during the seafood fair in Barcelona in April, marketing manager Hope Kitterman described this year as a turning point for the company.

Scalable operation

“We are entering profitability for the first time. It feels like a shift from a pioneering phase to a more proven and scalable operation,” she told LandbasedAQ.

The Kingfish Company operates a land-based RAS facility in the Netherlands producing yellowtail kingfish. The facility has a maximum capacity of 3,500 tonnes per year, and the company expects this year's production to be close to full capacity.

In recent years, the company has pointed to high investments in infrastructure and replacement of early-generation equipment as key challenges for further growth.