Norwegian cod farming company Norcod has successfully raised over NOK 190 million in a private placement despite the challenging market conditions. The net proceeds from the private placement will be used to increase biomass in line with Norcod’s production plan, the development of two new locations, and the support of general corporate purposes.
“Raising more than NOK 190 million in a challenging market is a great achievement for Norcod, and we are grateful for the continued support of our existing shareholders. This funding will enable us to further increase our production and expand to new locations, taking us one step closer to realizing our goal of becoming a leading global provider of sustainable cod,” said CEO Christian Riber.
The funds were raised through strong and long-term existing shareholders with significant experience and belief in the cod farming industry, and who also recognize the progress Norcod has made in recent years, reported from the company.
In addition, they said this is a significant step forward for Norcod in ensuring long-term sustainability and growth, and the company is thrilled that investors have shown confidence in Norcod‘s business model and ambitious plans.
First cod farmer to successfully produce in industrial scale
Norcod has achieved significant milestones in recent years, including being the first cod farmer to produce in industrial scale successfully and restarting the industry. The private placement is a testament to the company’s potential and the strong market demand for sustainable and high-quality Atlantic Cod.
“With this new injection of funds, Norcod is well-positioned to further expand its operations and cement its position as a leader in the Norwegian cod farming industry. This is a clear indication of the market’s confidence in Norcod and its ability to deliver on its growth plans. The company is excited to have such a broad and supportive shareholder base and looks forward to working closely with them to deliver on its strategic objectives,” said Riber, “we are thrilled with the success of this private placement and would like to thank all our investors for their support.”
Havlandet Norcod kicked off its second production
Some weeks before, their joint venture, Havlandet Norcod, kicked off its second production in the world’s largest hatchery for cod. In total, they will produce more than 7 million cod fry which will be delivered to ongrowing facilities around Norway during July. They will live there until they are big enough to be stocked in cages at sea.
The new facility provides the opportunity to produce cod fry several times a year, which is important for the cod industry that is now emerging. The capacity of the plant is large enough to deliver to many more customers in the coming years. By controlling light and temperature, they can determine with high precision which day the eggs are ready to be fertilized.
The process implies that the fish is picked up and stroked to extract roe from the females and milt from the males. This is mixed together and placed in the hatchery, where after a few weeks they hatch and emerge as larvae. The cod is 1,200 times smaller than the salmon when it comes out of its egg, so everything must work from the first second to get a good result. The facility also produces live feed for the larvae that hatch.
A massive challenge
Norcod is the culmination of a highly ambitious endeavor to raise premium Atlantic cod sustainably and commercially. A massive challenge that’s never been solved before. Now in its sixth generation, their cod is naturally bred in Norwegian fjords, bringing their customers a product of first-rate quality.
Innovative partnerships across borders and industries allow them to tailor production to individual customer needs, effectively eliminating the traditional unpredictability in prices and supplies.