Inside information: Fifax is planning a share issue and/or to issue a convertible loan to raise approximately EUR 4 million
Fifax Plc, Company Announcement, Inside information, 9 November 2023, at 3.00 p.m. EET
The Board of Directors of FIFAX Plc (“Fifax” or “Company”) is going to propose to the Extraordinary General Meeting (“EGM”) of the Company, which will be convened through a notice of the EGM published through a separate company release, that the EGM authorizes the Board of Directors to resolve on the issuance of shares as well as special rights entitling to shares, to carry out a share issue and/or to issue a convertible loan (the "Financing Transactions").
To carry out the Financing Transactions, through which the Company targets raising approximately EUR 4 million in gross proceeds, the Board of Directors proposes that the EGM would authorize the Board of Directors to resolve on the issuance of a maximum of 25,000,000 new shares, which corresponds to approximately 46.1 percent of all of the outstanding shares in the Company, through a share issue and/or by issuing special rights entitling to shares, as specified in Chapter 10 Section 1 of the Finnish Companies Act (624/2006, as amended).
Fifax’s shareholders FV Group AB, Finnish Industry Investment Ltd, Ahlstrom Invest B.V., Oy Etrisk Ab, Holdix Oy Ab and certain other shareholders, holding in aggregate approximately 68.0 percent of the outstanding shares and votes in the Company, have irrevocably undertaken to attend the EGM and to vote in favour of the authorization.
The planned Financing Transactions follow and are part of the Company's previously on 3 February 2023 announced plans and targets, pursuant to which Fifax continues during 2023 to explore different financing options with the objective of reaching the new mid-term targets by the end of 2024 in accordance with the operational and financial targets published on 3 February 2023, and that Fifax estimates that the financing required to reach the new mid-term targets would be in the aggregate approximately EUR 10 million (in addition to the funds raised in the Rights Offering in spring 2023).
With the funds to be raised in the Financing Transactions, the Company intends to strengthen its financial position and continue the ramp-up of its fish farming operations, which includes several investments related to improving biosecurity, operational efficiency and profitability. The investments would also support achieving the environmental targets of the Company.
In addition to the Financing Transactions, Fifax continues to explore different and/or supplemental financing options to reach the Company's mid-term targets by the end of 2024.
The proposal of the Board of Directors is described in more detail in the notice of the EGM, which will be published through a separate company release.
Comments of Samppa Ruohtula, CEO: “Since restarting the Eckerö facility in March, we have progressed according to the presented plan and schedule. We have implemented the investments in increased biosecurity and performance that were on the roadmap for this year. Our fish stock is growing as planned, our hatchery and fingerling units are in full production, and the first grow out -unit is up and running. We are now looking forward to continue on the track towards our mid-term targets. The proposed financing transactions are an important step as we continue our work towards our major milestone of full production level during 2024.“
FIFAX PLC
For more information:
Samppa Ruohtula
CEO, FIFAX Plc
+358 40 559 8812
samppa.ruohtula@fifax.ax
Certified Advisor:
Aktia Alexander Corporate Finance Oy
+358 50 520 4098
Fifax in brief
Fifax’s vision is to be a forerunner in large-scale sustainable fish farming with a minimal impact on the environment, so that locally and sustainably produced fish can be enjoyed by its customers all year round.
Established in 2012, Fifax utilizes ultra-intensive Recirculating Aquaculture Systems (RAS) technology based on the principle of an almost completely closed water circulation within the facility, where the fish live in large land-based indoor tanks. Indoor tanks better safeguard against external factors, and the environmental impact and pollution from the facility is significantly lower when compared to traditional fish farming in water bodies.
FIFAX Plc’s shares have been listed in Nasdaq First North Growth Market Finland.