Andfjord Salmon AS: Food industry major Jerónimo Martins Group to invest in Andfjord Salmon

Andfjord Salmon AS: Food industry major Jerónimo Martins Group to invest in Andfjord Salmon

22 Jun 2022 06:57 CEST

22.6.2022 06:57:15 CEST | Andfjord Salmon | Inside information

Jerónimo Martins, a Portugal-based international food industry Group has agreed
to invest NOK 173,9 million (equivalent to c. EUR 16,8 million) in Andfjord
Salmon
through a directed private placement.

"Just a few days before the 2022 United Nations Ocean Conference in Lisbon, we
are investing in a promising and truly innovative sustainable business project
that is fully aligned with our corporate responsibility priorities. Andfjord
Salmon's project is focused on using efficient technology to produce salmon - a
strategic seafood product - with less impact on natural resources, therefore
contributing to conserve and sustainably use the ocean, the sea and marine
resources. In a challenging backdrop of both high pressure on the ocean stocks
and food security, we believe that investing in this innovative and sustainable
production will also work for us as a learning curve accelerator in what regards
best practices in aquaculture projects" says Pedro Soares dos Santos, Jerónimo
Martins Chairman and CEO.

With this investment, done through its agribusiness subsidiary Jerónimo Martins
Agro-Alimentar, S.A., Jerónimo Martins Group becomes one of the largest
shareholders in Andfjord Salmon with an ownership share of 10.1 percent.

"We are delighted to attract such a major industrial investor to Andfjord
Salmon. We consider it an advantage to have an owner that possesses extensive
competence about international food industry sales, marketing, logistics and
distribution. Hopefully we can tap into this know-how when we are ready to bring
our salmon to the market," says Martin Rasmussen, CEO of Andfjord Salmon.

SUSTAINABILITY MATCH

Andfjord Salmon has set an ambition to develop the world's most fish-friendly
and sustainable fish farming facility of its kind. The company's flow-through
system is key to recreate the salmon's natural habitat on land and thereby
produce salmon with very low energy consumption and smallest possible
environmental footprint.

Andfjord Salmon's sustainability profile has been an important factor behind
Jerónimo Martins Group's investment in the company. Jerónimo Martins Group
invests heavily in sustainable food production and distribution. CDP -
Disclosure Insight Action, which assesses 13,000 companies across the globe, has
positioned the Jerónimo Martins Group at the leadership level including the
Company in its "A List" in the Climate and Water Security programmes. As regards
deforestation, and for the third consecutive year, the group is the only food
retailer in the world to score an 'A-' (leadership level) in most of the
commodities linked to deforestation - palm oil, cattle and soy.

"Jerónimo Martins Group's approach to sustainable food production and operations
is highly impressive. We are proud that the Group has identified Andfjord
Salmon's approach to sustainable fish farming as a good match for its own
sustainable, agribusiness portfolio," adds Martin Rasmussen.

THE INVESTMENT

Under the agreement, Andfjord Salmon will issue, and Jerónimo Martins
Agro-Alimentar will subscribe for, 4,144,932 new shares in Andfjord Salmon
through a directed private placement.

The new shares will be issued by the board pursuant to the authorization granted
by the annual general meeting on 28 April 2022. The private placement will
require a deviation from shareholders' pre-emption rights, in line with the
authorization granted by the general meeting. The board has considered the
private placement in light of relevant equal treatment regulations, and
concluded that it will be in both Andfjord Salmon's and its shareholders'
interest to carry out the private placement as set out herein, taken into
account inter alia also the expertise, contributions and commitments offered by
Jerónimo Martins Group and in view of the further development of the company.

The subscription price per new share has been set to NOK 41.945, which is equal
to the midpoint between the average volume weighted price of the Andfjord Salmon
shares in the last 15 trading days and the last 30 trading days on Euronext
Growth Oslo. In total, the private placement will raise gross cash proceeds of
NOK 173,9 million. The proceeds are intended to be used partly for funding the
company's expansion plan and for general corporate purposes.

Following completion of the directed private placement, subscription of the new
shares and relevant registrations, the share capital of Andfjord Salmon will be
NOK 41,038,927, divided on 41,038,927 shares.

RELEASE OF SMOLT

Andfjord Salmon plans to release smolt in its first pool at Kvalnes, Andøya, in
June 2022.

Blasting and excavation work for the next pools (Phase 2) at Kvalnes is ongoing.

Andfjord Salmon holds a license to produce 10,000 tonnes MAB salmon at Kvalnes,
equivalent to a target production volume of 19,000 tonnes HOG.

Sparebank 1 Markets AS has acted as financial advisor to Andfjord Salmon in the
transaction. Advokatfirmaet Schjødt AS has acted as legal advisor to Andfjord
Salmon and Advokatfirmaet Thommessen AS as legal advisor to Jerónimo Martins.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements set out in section
5-12 of the Norwegian Securities Trading Act. The information was submitted for
publication, through the NTB Kommunikasjon service by the contact persons listed
below.

CONTACTS

* Bjarne Martinsen, CFO, Andfjord Salmon AS, +47 975 08 345,
[email protected]
* Martin Rasmussen, CEO, Andfjord Salmon, +47 975 08 665, [email protected]
* Rita Fragoso, Head of Media, Corporate Communications and Responsibility,
Jerónimo Martins, +351 21 752 61 14, [email protected]

ABOUT ANDFJORD SALMON

About Andfjord Salmon AS

Located at Kvalnes on the island of Andøya on the Arctic Archipelago of
Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable
aquaculture concept for land-based farming of Atlantic salmon, based on a
flow-through technology solution . The company's ambition is to build the
world's most sustainable aquaculture facility of its kind.

Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.
www.andfjordsalmon.com - http://www.andfjordsalmon.com

About Jerónimo Martins Group

Jerónimo Martins Group is an international group based in Portugal with over 230
years' history in the food business. The group addresses the daily needs of
millions of consumers in three countries through a value proposition based on
quality food at competitive prices. Food distribution is its main activity.

In 2021, Jerónimo Martins Group delivered revenues of 20.9 billion Euros, with a
net profit of 463 million Euros. The group had 4,908 stores and 123,458
employees at year-end 2021. Ranked by market capitalisation, the group is second
highest valued company on the Lisbon stock exchange.

The Polish food store chain Biedronka is the Jerónimo Martins Group's largest
business. In Portugal, Pingo Doce is the supermarket segment leader while
Recheio leads the cash and carry market. In Colombia, Jerónimo Martins Group
owns the Ara chain of stores. Private label products are a major part of the
group's product mix.

The group also develops an agribusiness operation, Jerónimo Martins
Agro-Alimentar, to secure a sustainable supply of strategic products, ensuring
food safety and availability. Together with the group's retail companies, the
agribusiness unit stimulates innovation, differentiation and development of new
products.

Jerónimo Martins Agro-Alimentar is divided in four business areas: dairy,
livestock farming, fruit and vegetables, and aquaculture. The aquaculture
business area today operates three ocean-based fish farms - two in Portugal and
one in Morocco. In 2021, it had a total production of 1,400 tonnes of sea bass
and sea bream.

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Source

Andfjord Salmon AS

Provider

Oslo Børs Newspoint