Proximar will raise at least NOK 100 million with bond
The land-based salmon farmer is also initiating a strategic review to strengthen its capital structure
The Norwegian company Proximar Seafood, which operates a recirculating aquaculture system (RAS) facility at the foot of Mount Fuji in Japan, announced today that it is planning to issue of a convertible bond of at least NOK 100 million (£8m / ¥1.66 billion).
At least NOK 75m will come from new investors, while NOK 25m will be a continuation of existing convertible bonds.
According to the company, the proceeds will be used for working capital, operations and to strengthen the liquidity buffer while production and biomass are built up. At the same time, the financing will help extend the company's debt profile.
"We are pleased with the continued support from banks and investors, which secures our short-term liquidity and allows us to maintain full focus on operations," said cief executive Joachim Nielsen in the stock exchange announcement.
He points out that the company's priority is stable production of salmon over three kilograms, and believes that recent operational developments mean that Proximar is still on the path to profitable operations.
Must strengthen cash reserves
The bond loan will have a maturity date of July 2029 and a conversion price of NOK 0.60 per share. The coupon (interest rate) is 13% payment in kind (PIK) in the first year, and 15% PIK or 7% cash p.a. thereafter.
The company states that part of the capital raising will be used to meet a requirement from the banks to strengthen the cash balance. This is in connection with the banks having granted an exemption from a sales requirement related to the syndicated bank loan in the second quarter of 2026.
Proximar also states that the dialogue with the banks is constructive, and that the company is working on a possible 12-month extension of the syndicated bank loan of NOK 586m, which matures in August 2026.
Considering industrial investor
In parallel with the financing, the board has engaged the Japanese investment bank Nomura International to conduct a strategic review of the company.
According to Proximar, the goal is to strengthen the capital structure and find solutions for the long-term refinancing of the balance sheet.
According to Proximar, the review will, among other things, assess the possibility of attracting a long-term industrial investor for the business in Japan. The company notes that interest from Japanese investors has been strong.
The board justifies the initiative by saying that the company has had a period of improved biological and operational development, combined with positive future prospects.
Proximar operates a land-based salmon farm at the foot of Mount Fuji. The company deployed its first eggs in 2022 and conduct its first harvest in the autumn of 2024.
