First construction stage fully financed and commitment in South Korea

Press Release

Salmon Evolution was received with great interest in the capital market by both national and international investors when it secured some NOK 500 million in new equity through a private placement on 11 March 2021.

The issue was substantially oversubscribed, and will help to provide full financing for the first building stage at Indre Harøy in western Norway and the equity contribution to K-Smart Farming, a joint venture with South Korean seafood giant Dongwon Industries.

Håkon A Berg, CEO of Salmon Evolution, is extremely satisfied with the company’s financial position after the issue.

Financial security

“We’ve now put in place full financing of the projects we’ve taken on, both completing the first phase at Indre Harøy and our equity contribution to K-Smart Farming in South Korea,” Berg says.

“We thereby have no commitments which remain uncovered. That means we have a substantial financial platform which we believe to be unique in the land-based fish farming segment.”

Industrial ownership

Salmon Evolution acquired strong industrial owners from western Norway in an early phase. These shareholders represent the whole value chain in the seafood sector, and Berg believes that their experience has been important in the various rounds of raising capital.

“The credibility of our local and regional owners is high, and has been crucial in the funding process,” he says, and adds that strong financial players have also invested substantial capital in the company to help create a very strong foundation for further development.

Organisation build-up

The company will continue to build up its organisation as the first construction phase at Indre Harøy approaches completion. At the same time, it will establish a management and operating team in South Korea together with Dongwon to realise K-Smart Farming’s ambitious plans.

Optimal operation

“Our financial position equips us to concentrate even more strongly on creating an optimal operation in both construction and operating phases,” says Berg. “The unique expertise we possess will create the basis for completing the Indre Harøy project and a successful establishment in Korea.”

He reports that a secondment scheme in Norway is being established for Korean operations personnel.

“We’ll be using the same technology and concept in South Korea as we do here in Norway. Our experience with the hybrid farm at Indre Harøy creates the basis for best practice which we can transfer to developing and realising the Korean project.

“Employees in K-Smart Farming will acquire important experience by working at our Norwegian farm, and we’ll ensure that the lessons we continuously learn here will benefit the Korean project in every way. We believe that’s crucial for a successful land-based fish farm commitment in South Korea.”

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