The plan is to raise capital
New Zealand King Salmon reports a €46 million (NZD 73 million) full-year net loss. Due to fish mortalities, rising freight costs, and the pandemic consequences. The company was placed on a trading halt. It has now been lifted, after the knowledge of these results. The plan is to raise capital and so strengthen the balance.
Besides, palliating fish mortalities will cause a decline in the number of fish produced in 2022 and 2023. The increases will not get until 2024, according to New Zealand King Salmon. Rosewarne confirmed they will still develop a new salmon farm in Cook Strait.
The company is facing these challenging results through an underwritten €37.7 million rights offer. They give shareholders the chance to purchase 2.85 new shares for every share they hold for €0.09 per share. That offer is a roughly 83 % discount from the trading price before the trading halt of €0.5 per share.
In the same week, Michael Fabbro, vice president for North America in New Zealand King Salmon, has resigned from his role to lead Finger Lakes Fish.