LAXEY Successfully Completes €40 Million Equity Private Placement, Adding a Strong Group of Strategic and Financial Investors
LAXEY (the “Company”) is pleased to announce the successful completion of a €40 million Equity Private Placement, thereby finalizing the funding of its first section of 4,500 HOG landbased salmon production, hatchery and post smolt production. The funding round was led by Blue Future Holding, which is a part of German family-owned conglomerate EW Group. Other strategic investors include Nutreco, Seaborn, Kjartan Ólafsson and a Dutch industrial seafood company, which was joined by a group of financial investors including amongst others Almenni pension fund, Festa pension fund, Westman Islands pension fund and Snaebol. The equity capital raise was subscribed almost entirely by new shareholders to the Company and counted more than 25 investors. Blue Future Holding will hold a board seat in LAXEY, while Mr. Kjartan Ólafsson, is nominated to the board.
Construction significantly progressed, strategic decision to implement hybrid post smolt / grow-out production
The Company’s development is well underway, with the hatchery already operational with two batches performing well. The facility has a capacity of 4 million individuals and is ready for internal as well as external sales in autumn 2024. Progress remains on schedule for the grow-out site, utilizing a hybrid-flow-through technology, benefiting from the favorable local conditions with respect to bio-security and building cost. With significant excess smolt production in the initial years of development, the Company has made a strategic decision to utilize the excess tank capacity in the grow-out section for post smolt production for external sales, in addition to the production for human consumption. Sales of post smolt to the traditional farming industry would have the benefit of significantly increasing production in the sea pens and reduce lice issues.
Strong support, strong investors.
The Company has been mainly funded by the local Óskarsson family to date, and the addition of the strategically diverse and strong new investor group, who are prominent figures in the international salmon industry, creates a very strong platform for the further growth of LAXEY. The shareholder group’s collective expertise and support will further propel the company towards its strategic objectives.
The development of LAXEY will create significant employment and industrial opportunities on the Westman Islands, a community with strong seafood heritage. With the closing of this funding round, LAXEY has raised more than €80 million.
“We are thrilled by the overwhelming support from our existing investors, and now the new group of high quality strategic and financial investors. It is a testament to our strategy of building a sustainable, bio-secure and financially attractive land-based salmon farm on the Westman Islands,” said Lárus Ásgeirsson, chairman of the board of LAXEY. “This capital increase and ongoing developments underscore our commitment to sustainable aquaculture, building industry on the Westman Islands, and further enhancing the salmon industry in Iceland.”
Arctic Securities acted as Sole Global Coordinator and Bookrunner in the private placement, with Mar Advisors acting as Financial Advisor to LAXEY.
