Salmon Evolution is pleased to announce that it has entered into a strategic partnership agreement with Cargill. Under the agreement, Cargill will supply 100% of Salmon Evolution’s feed volumes for the Indre Harøy facility which is scheduled to commence production in March 2022.
Cargill has further committed to allocate significant resources and R&D capacity with the purpose of developing sustainable feed solutions tailored to Salmon Evolution’s operational targets, hereunder high biological performance and premium product quality.
Mr. Håkon André Berg, CEO of Salmon Evolution comments:
“Having the best possible feed is essential for every salmon farmer. Particularly, in our HFS system where we create optimal and stable living conditions for the salmon, we see a strong and untapped potential in tailoring a feed focused on maximizing biological performance and product quality.
Given Cargill’s solid reputation and track record as a supplier of high-performance feed solutions, combined with their substantial R&D capabilities and capacities both in Norway and abroad, we are confident that we have found an ideal partner.”
Mr. Fredrik Witte, Managing Director of Cargill Aqua Nutrition, North Sea further comments:
“Cargill works with salmon farmers around the world, providing feed that supports fish welfare and improves farmer productivity and earnings potential, while reducing the environmental impact of aquaculture. One of the key areas to realizing the massive potential in land-based salmon farming is having optimal feed tailored to the salmon’s specific living environment – and we’re committed to working with Salmon Evolution to help them realize this potential.
In connection with the agreement, Cargill will also invest approximately USD 5 million in Salmon Evolution, by way of a private placement of new shares to be issued, with a subscription price of NOK 7.71 per share which equals the volume weighted average price the last 20 trading days. The proceeds from the Private Placement will be used for general corporate purposes including evaluation and development of future expansion opportunities, further underpinning Salmon Evolution’s strategy of taking a lead role in the global land-based salmon farming industry.
Through the Private Placement Salmon Evolution will issue 5,541,374 new shares which will be subscribed for by Cargill’s Norwegian subsidiary Ewos AS. The Issue Shares will be issued pursuant to the board authorization granted by Salmon Evolution’s general meeting on 19 May 2021 and is expected to be issued during October 2021. Upon issuance of the Issue Shares, Salomon Evolution will have a share capital of NOK 15,539,824.45 consisting of 310,796,489 shares, each with a par value of NOK 0.05.
The Private Placement entails a deviation of the existing shareholders preferential rights. The Board has considered the Private Placement in light of the equal treatment obligations under the Norwegian Public Limited Companies Act, the Norwegian Securities Trading Act and the rules on equal treatment under Oslo Rule Book II for companies listed on the Oslo Stock Exchange and the Oslo Stock Exchange’s Guidelines on the rule of equal treatment, and is of the opinion that the Private Placement is in compliance with these requirements. The Board is of the view that it is in the common interest of the Company and its shareholders to carry out the Private Placement based on inter alia the strategic partnership achieved with Cargill, that the Private Placement is structured to ensure that a market based subscription price is achieved, existing shareholders will be subject to very low dilution (approx. 1.8%) and the private Placement will not alter any majority or control positions amongst shareholders in the Company.
For further information, contact:
Håkon A. Berg
CEO, Salmon Evolution
+47 411 92 257
Trond Håkon Schaug-Pettersen
CFO, Salmon Evolution
+47 911 91 327
About Cargill
Cargill’s 155,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive. We combine 155 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture. For more information, visit Cargill.com and Cargill’s News Center.
About Salmon Evolution
Salmon Evolution is a Norwegian land-based salmon farming company focused on extending the ocean’s potential by transferring the best preconditions offered by the sea to farm fish on land through its hybrid flow-through system technology (HFS). This secures a truly sustainable production process with controlled and optimal growth conditions and limiting operational and biological risk.
The Company’s first production facility is under construction at Indre Harøy, strategically located on the Norwegian west coast with unlimited access to fresh seawater, renewable energy, established infrastructure for salmon farming, and an educated and experienced work force. The entire project is designed for an annual capacity of approx. 31,500 tonnes HOG.
The Company has also entered into a joint venture with Dongwon Industries where the parties will develop, construct and operate a land-based salmon farming facility in South Korea with an annual production capacity of 16,800 tonnes HOG, using Salmon Evolution’s HFS technology.
Salmon Evolution ASA is listed on Oslo Børs under the ticker SALME.