Atlantic Sapphire, a salmon farming company grappling with significant financial losses, has successfully secured a minimum of $20 million in new funding. This crucial capital injection comes as Coral HoldCo, a group comprising the company's largest shareholders and convertible loan holders, moves forward with a voluntary takeover bid. The proposed acquisition aims to streamline the company's structure and facilitate its delisting from the Euronext Oslo Børs, signaling a pivotal moment for the struggling aquaculture enterprise.
Coral HoldCo's takeover plan involves launching a recommended voluntary offer of Nkr0.8 ($0.086) per share. Upon completion, Coral HoldCo intends to initiate a 'squeeze-out' of the remaining minority shareholders at the same price, subsequently removing Atlantic Sapphire's shares and warrants from the Oslo exchange. This strategic maneuver is designed to consolidate ownership and provide a clear path for the company's future operations under new financial directives. The restructuring agreement, a cornerstone of this initiative, has garnered support from key investors including Condire Management, Nordlaks Holding, Nokomis Capital, Strawberry Capital, and Joh. Johannsson Eiendom, collectively representing a substantial portion of the company's shares and convertible loans.
The financial lifeline includes a previously announced $10 million bridge loan and a fully underwritten $10 million equity raise, with an additional potential for up to $6 million through further share subscriptions. These measures are specifically designed to address Atlantic Sapphire's long-term financing requirements and stabilize its precarious financial standing. As part of the arrangement, the bridge loan will be transferred to Coral HoldCo and converted into shares at a rate of Nkr0.10 each. Furthermore, investors holding the majority of the convertible loan have consented to a 23% write-down, with the remaining debt also converting into equity at Nkr0.10 per share.
The completion of this multifaceted deal is contingent upon several conditions, including the approval of the offer document by Norway's financial regulator and the endorsement of shareholders at a general meeting. Earlier this year, Atlantic Sapphire had issued warnings about its urgent need for fresh capital to avert a technical default and potential insolvency, indicating that no alternative financing solutions were available. The board emphasized that without this transaction, the company's financial future would be highly uncertain, potentially leading to limited recovery for creditors and a total loss of value for shareholders. The board's assessment is that the Nkr0.80 offer provides minority shareholders with a reasonable opportunity to preserve some value from their investments.
In 2024, Pedro Courard assumed the role of CEO, succeeding founder Johan Andreassen. Despite reporting a significant revenue increase to $43.3 million in 2025, up approximately 90% due to higher harvest volumes and improved pricing, Atlantic Sapphire's operating loss widened to $180.4 million from $162.7 million, and its net loss grew to $191.2 million from $167.3 million. The company's commentary alongside its May 4th results highlighted a challenging financial situation marked by lower-than-planned revenues and delayed cost improvements, underscoring the critical need for additional capital to achieve positive EBITDA. This financial and strategic overhaul represents a critical juncture for Atlantic Sapphire as it endeavors to navigate its path toward stability and future viability.
