Bergen, Norway – 26 August 2021 – Proximar Seafood AS (EURONEXT: PROXI) today reported its first-half year 2021 results. Proximar is in a project development phase and consequently had no income in the first half. The net loss was NOK 19.4 million, compared to a loss of NOK 2.8 million in the first half of 2020, as the project activity has ramped up as planned.
“We are pleased with the progress made in the first half of 2021, and despite the pandemic, we have proceeded according to schedule and estimated cost when it comes to the construction of our first land-based recirculation facility in Oyama Town, Shizuoka in Japan,” says Joachim Nielsen, CEO of Proximar Seafood. “We have strengthened both our administrative and operational team and will continue our recruitment process going forward to secure a smooth production start in the third quarter 2022.”
Concrete works at the facility in Oyama Town are ongoing for both the Hatchery and Nursery building as well as the Post Smolt Grow-out building. The first layers of pipes have been delivered by Aqua Maof and have been installed and tested. In June, Proximar signed a contract with HighComp for the delivery of all fish tanks and harvest channels.
In April, Proximar received Dark Green shading rating from CICERO Shades of Green, both at a company level and with regards to debt financing. CICERO provides independent, research-based evaluations of green bond investment frameworks to determine their environmental robustness. Its second opinions are graded Dark Green, Medium Green and Light Green to offer investors better insight into the environmental quality of green debt.
“We are very proud to be the first company in our industry to receive the darkest shading and will strive to maintain this high standard. We consider this important for our future sales and marketing and are also pleased to see that ESG is becoming important for Japanese banks and financial institutions,” says Nielsen.
Proximar signed a Memorandum of Understanding (MoU) with Marubeni Corporation in May with regards to a potential sales and marketing agreement. Marubeni is one of the largest general trading companies in Japan, with 136 branches and offices in 68 countries. Proximar considers this a validation of its plans and confirmation of the interest in its future product. The intention of the MOU is to agree on an off-take strategy, which is an important part of the long-term financing in Japan.
Proximar’s cash balance stood at NOK 98 million as per 30 June 2021. The company raised NOK 400 million in a private placement in January and is working with Japanese banks and financial institutions to obtain long-term financing. The pace of the negotiations has been hampered by the pandemic and ensuing travel restrictions which could impact the schedule, but Proximar remains optimistic on the prospects of securing an attractive long-term financing structure.
“We are encouraged by the feedback we get from sources in the Japanese market, which supports our view on the market potential of our fish due to its freshness, Mt Fuji location, clear ESG profile and local origin. Our belief in a premium pricing potential is also confirmed. We therefore retain a positive outlook on the prospects for our farming facility and move towards operational start-up with confidence and enthusiasm,” Nielsen concludes.
For more information, please see the full report and presentation for the first half of 2021 attached.
Proximar Seafood will present its financial results for the first half of 2021 on Thursday 26 August 2021, at 09:30 CEST. The investor presentation will be streamed and will be hosted by CEO Joachim Nielsen and CFO Pål K. Grimsrud. The presentation will be held in English and questions can be submitted throughout the event. The streaming event is available through: https://channel.royalcast.com/landingpage/hegnarmedia/20210826_3/
For further information, please contact:
Pål K. Grimsrud, CFO, Proximar Seafood AS
Tel: +47 99477599
Email: pkg@proximar.com
About Proximar Seafood
Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility under construction at the foot of Mount Fuji in Japan. Through land-based fish farming, using high-quality ground water secured close to Mount Fuji, the company will produce fresh Atlantic Salmon, harvested the same day. Proximar’s location, near one of the world’s most important fish markets, implies significant advantages, both in terms of reduced cost and carbon footprint.