September 21, 2023
Laxey raises US$45 million in equity for Icelandic land-based salmon farm
Laxey, formerly Icelandic Land Farmed Salmon, has successfully secured EUR 42 million (~US$45 million; EUR 1 = US$1.07) in the initial phase of its equity fundraising campaign for a land-based salmon farm project in Iceland, SeafoodSouce reported.
The company has already begun construction on a state-of-the-art salmon facility with an annual capacity of 32,000 metric tonnes. Located on Heimaey, the largest of the Westman Islands in Iceland, this project includes a hatchery set to be operational by the end of 2023, with full production expected to commence in 2024.
Although Laxey has not disclosed the identities of its investors in this fundraising round, it has revealed that a prominent local family with ties to Iceland's seafood industry, who recently divested their seafood holdings, is among the anchor investors. The company utilized Arctic Securities as its global coordinator and bookrunner, with Mar Advisors serving as its financial advisor.
Laxey has declared its intention to continue seeking additional capital and new stakeholders within both Nordic and international capital markets as the project progresses. This fundraising milestone marks a significant step toward realizing its ambitious plans.
The leadership team at Laxey comprises Chairman Larus Sigurour Asgeirsson, a former engineer with experience at companies such as Marel, Sjova, and Icelandic Group; Daoi Paasson, a board member and the founder of Leo Seafood; and Hallgrimur Steinsson, previously the manager of the Langa fish-processing facility in the Westman Islands.
Originally targeting an annual production capacity of 10,000 metric tonnes, Laxey has raised its goal to 27,000 metric tonnes by 2031. This ambitious expansion plan reflects the company's confidence in the growing market for Icelandic land-farmed salmon from the Westman Islands.
The salmon farm will be developed in six sections, with the first section expected to become operational by mid-2024 and sales commencing in late 2025. Each subsequent section will enhance production efficiency while reducing investment and operational costs per kg produced.
Laxey is committed to sustainable practices. It plans to derive 100% of its energy from renewable sources and will collect biological waste for reuse. The farm will utilise a flowthrough system, with 65% seawater that will be recycled and 35% freshwater sourced from nearby boreholes, ideal for salmon farming. Moreover, the company intends to minimise its carbon footprint by primarily transporting its salmon by sea.
Laxey aims to produce premium-quality salmon, emphasising the maximization of quality to create new industry standards that satisfy and retain loyal customers.
The demand for farmed salmon continues to grow worldwide due to increasing awareness of healthy lifestyles, the expanding global middle class, and a growing emphasis on sustainability in food production. Laxey's project has undergone rigorous environmental impact assessments to ensure responsible and sustainable practices.