Loss-making salmon farmer Atlantic Sapphire has successfully secured a minimum of $20 million in new funding as its acquisition by Coral Holdco progresses. The company announced in a filing on the Euronext Oslo Børs that Coral HoldCo intends to initiate a recommended voluntary offer at Nkr0.8 ($0.086) per share. Following the conclusion of this deal, Atlantic Sapphire plans to delist from the exchange.
Coral HoldCo, established by a consortium of Atlantic Sapphire’s primary shareholders and holders of convertible loans, aims to “squeeze out” remaining minority shareholders at the same share price. Additionally, it seeks to remove Atlantic Sapphire’s shares and warrants from the Oslo exchange.
The restructuring agreement has been signed with key investors, including Condire Management, Nordlaks Holding, Nokomis Capital, Strawberry Capital, and Joh. Johannsson Eiendom. Collectively, these stakeholders control about 63% of the shares and 93% of the company’s outstanding convertible loans.
This restructuring features a previously announced bridge loan of $10 million and a fully underwritten equity raise of $10 million, with potential for an additional $6 million in share subscriptions. Atlantic Sapphire indicated that these measures are designed to meet the company’s long-term financing needs.
Under the terms of the transaction, the bridge loan will be transferred to Coral HoldCo and converted into shares at Nkr0.10 each. Furthermore, investors holding the majority of the convertible loans have agreed to a 23% write-down before converting the remaining debt into equity at the same price.
Completion of the deal is contingent upon several conditions, including approval from Norway’s financial regulator for the offer document and shareholder approval during a general meeting. This funding initiative comes after Atlantic Sapphire warned earlier this year about the necessity of fresh capital to avert a technical default and possible insolvency.
The company also stated, “no alternative financing solutions have been available to the company.” The board emphasized that, without this transaction, the financial situation would likely result in uncertainty for employees, limited recovery for creditors, and a total loss of value for shareholders.
The board further asserted that the Nkr0.80 offer provides minority shareholders “a reasonable opportunity to preserve some of their shareholder value.”
In 2024, Pedro Courard assumed the role of CEO, succeeding founder Johan Andreassen. Atlantic Sapphire, which operates a land-based salmon farm in Miami, reported revenue of $43.3 million for 2025, marking a 90% increase from the previous year due to higher harvest volumes and improved pricing.
Despite this growth in revenue, the company’s operating loss widened to $180.4 million, compared to $162.7 million the prior year. The net loss likewise rose to $191.2 million, up from $167.3 million. In commentary accompanying the results released on May 4, the group noted, “Challenging financial situation as revenues have been lower than plan and cost improvements have delayed – additional capital required to fund the company to positive EBITDA.”
These developments highlight ongoing challenges and transformations within the food and beverage industry, reflecting broader trends in the food and drink business and consumer behavior.
