Contemplated private placement and listing on Merkur Market

Sortland, 10th of June 2020.

Andfjord Salmon AS (“Andfjord Salmon” or the “Company”) has engaged ABG Sundal Collier ASA as sole manager and bookrunner (the “Manager”) to advise on and effect a contemplated private placement of new shares raising gross proceeds of NOK 120 million (the “Private Placement”).

Andfjord Salmon has applied for, and will, subject to successful completion of the Private Placement and the necessary approvals from the Oslo Stock Exchange, list the shares of the Company on Merkur Market (the “Listing”). The first day of trading on Merkur Market is expected to be shortly after completion of the Private Placement, and currently expected to be in the week commencing 22 June 2020.

The price per share in the Private Placement has been set to NOK 40.00, equivalent to a pre-money equity value of the Company of NOK 1,195 million. Certain existing shareholders in the Company have pre-committed to subscribe for shares for a total amount of NOK 20 million in the Private Placement. In addition, three cornerstone investors, have, subject to certain conditions, undertaken to subscribe for and be allocated shares as follows: (i) DNB Asset Management has undertaken to subscribe for and be allocated shares for NOK 20 million; (ii) Nordea Investment Management has undertaken to subscribe for and be allocated shares for NOK 20 million; and (iii) Toluma Norden AS has undertaken to subscribe shares for NOK 10 million and be allocated shares for a minimum of NOK 8 million.

Read the Andfjord-story and watch the film:
‍
‍"Our grandkids will inherit the planet. We will leave them a footprint we can be proud of."

The net proceeds from the Private Placement will primarily be used to invest in the Company’s shore based salmon farming facility at Kvalnes, expansion to new areas at Breivik, Fiskenes and juvenile salmon production sites (including regulation and license processes) and infrastructure for such expansion.

The bookbuilding period in the Private Placement will commence today, 10 June 2020 at 09:00 CEST and close on 11 June 2020 at 14:00 CEST. The Manager and the Company may, however, at any time resolve to close or extend the bookbuilding period. If the bookbuilding period is shortened or extended, any other dates referred to herein may be amended accordingly.

The  Private Placement will be directed towards Norwegian  and  international  investors,  in  each  case  subject  to an exemption from offer prospectus requirements and any other filing or registration  requirements in the applicable jurisdictions and subject to other selling restrictions. The minimum application and allocation amount has been set to the NOK equivalent of EUR 100,000. The Company may, however, at its sole discretion, allocate an amount below EUR 100,000 to the extent applicable exemptions from the prospectus requirement pursuant to the Norwegian Securities Trading Act and ancillary regulations are available.

Completion of the Private Placement is conditional on the Company resolving to complete the Private Placement and issue the new shares allocated thereunder in accordance with an authorisation granted by the Company's annual general meeting in 2020. The Company reserves the right, at any time and for any reason, to cancel, and/or modify the terms of, the Private Placement. Neither the Company nor Manager will be liable for any losses incurred by applicants if the Private Placement is cancelled, irrespective of the reason for such cancellation.

‍

Read the company presentation

Andfjord Salmon in brief:‍

Andfjord Salmon was established in 2014 by the founder Roy Bernt Pettersen, currently the Chairman of the Board, taking an active part in the Company’s operations. The Company holds a concession to farm 10,000 tonnes (MAB) of salmon in their shore based facility located on Andøya, the northernmost island in the Arctic Archipelago of Lofoten, Vesterålen.Built on a foundation of innovation and sustainable salmon farming, Andfjord Salmon has developed a patented seawater flow-through technology that combines the benefits from traditional ocean net-pens and land-based salmon farming. This provides favourable farming conditions at relatively low investment and operating costs. At its location on Andøya, Andfjord Salmon has vast supply of oxygen-rich seawater, with favourable and stable temperatures reducing farming time. Through water intake at different depths and filtering systems, the design alleviates well known biological issues.

The Company focuses on sustainable production throughout its entire farming cycle, striving to achieve the lowest environmental impact possible. Andfjord Salmon aims to become a leading player in sustainable aquaculture through a culture and value-chain built around fish welfare, healthy food for the end markets and lowest possible footprint (i.a. through reduced feed waste and waste recovery) and energy consumption.

Andfjord Salmon has acquired land, governmental concession and necessary entitlements for an annual production of 10,000 tonnes (MAB) at Kvalnes. In addition, the Company has expansion potential on two additional sites on the East shores of Andøya, representing substantial growth potential. The Company intends to begin to stock smolt at Kvalnes during H2 2020 and expect first harvest during 2021.

Company highlights:

• Facility based on patented seawater flow-through system, combining the benefits from traditional net-pen and land-based aquaculture

• The flow-through system has been simulated and reviewed as functional by Sintef Ocean, a leading engineering and research facility for the Ocean Space

• Farming sites are strategically located at Andøya, with immediate access to nutrient and oxygen-rich seawater with favourable and stable temperatures

• Holds licenses for 10,000 tonnes (MAB) with targeted production in excess of 12,500 tonnes (HOG) when fully developed

• Clear roadmap to a total license capacity of 70,000 tonnes (MAB)

• Strict focus on sustainability and high product quality to achieve a premium positioning

• Dedicated management team and founder, supported by individuals with long experience from salmon farming in the Board of Directors and Advisory Board

Advisors:‍

ABG Sundal Collier ASA is engaged as sole manager and bookrunner in connection with the Private Placement and Listing. Advokatfirmaet Schødt AS is acting as legal advisor to the Company and Advokatfirmaet Thommessen AS is acting as legal advisor to the Manager.

For more information please contact:‍

Martin Rasmussen, Chief Executive Officer, +47 975 08 665
Helge Krøgenes, Director Financing & Business Development, +47 930 96 109

‍