Salmon farmer nets an extra £21m from investors
Land-based salmon farmer First Water, which intends to eventually produce around 60,000 tonnes of fish per year at its site in Thorlakshofn on the southwest coast of Iceland, has completed a share capital increase of approximately €24 million (£21.1m).
The majority of the investment came from new shareholders, alongside strong participation from existing shareholders. Three Icelandic pension funds joined as new shareholders, which means that eight of the 10 largest Icelandic pension funds now holding shares in the company, said First Water.
The company said that since its establishment, it has raised a total of €185m in equity and approximately €80m in construction financing.
Harvesting at 5kg-plus
First Water is finalising construction of the first of six planned development phases in Thorlakshofn, which includes eight roofed 25-metre land-based tanks, and has begun harvesting and exporting salmon weighing 5kg and above.
Preparations are under way for the next phase - the development of 28-metre tanks - which will double annual production capacity from 5,000 to 10,000 tonnes (head on gutted).
“This capital increase marks an important milestone in First Water’s ongoing development in Thorlakshofn and enables the company to continue expanding and advancing its operations of its land-based salmon facility,” said chief executive Eggert Thor Kristofersson.
“Our experience with salmon farming in closed 25-metre tanks has been excellent, and customer response to our 5kg salmon has far exceeded expectations.”
Strong demand
Kristofersson added that demand for the company’s fish, which is being sold in Europe and the United States, is exceptionally strong.
“We have already sold approximately 2,200 tonnes of premium land-based salmon. Our focus now is on continuing construction at our Laxabraut facility in Thorlakshofn, securing long-term financing, and strengthening our sales and marketing efforts. I would like to welcome our new shareholders and thank all investors for their continued trust and support in our development plans.”
