Salmon farm. (Photo: Russian Aquaculture)

Russian Aquaculture plans to raise USD 50 million in the stock exchange

RUSSIAN FEDERATION
Wednesday, March 08, 2017, 03:00 (GMT + 9)

Russian Aquaculture is planning to hold a secondary public offering (SPO) of shares on the stock exchange so it haspresented to the Board of Directors the issue of determining the value of shares.

The company’s CEO Ilya Sosnow, who is also the firm’s largest shareholder (47.9 per cent), is hopeful the placement of the company will be held in the summer and autumn this year and explained it has been planned to raise up to USD 50 million for further development of the company,

As part of these development plans, the company is ready to invest in the construction of new farms in the Barents Sea and will fill the 11 existing sites with fish as well as participate in new tenders for the distribution of water areas.

Besides, at the end of 2017 the company expects to increase production by about 50 per cent to more than 9,000 tonnes.

Sosnow recalled that the company had to face certain hardships in recent years, such as a ban on imports of certain foodstuffs from the United States, Europe, Canada, Australia, which led to the sale of its distribution division: Russian Fish Company (RSC).

Further difficulties were caused by soaring prices, which caused a demand reduction for the company’s products.

In addition, the primary processing plant in the Murmansk region caught fire and salmon lice and mycobacterios spread, producing heavy loss in 2015.

However, the company's business improved noticeably in 2016, when its profits increased almost threefold to RUB 2.5 billion (USD 42.9 million) due to the growth in production and favorable market conditions.

The firm has shown good financial results, and is now planning to develop and grow but its representatives are aware of the fact that it will have to convince investors about the reliability of its business and that it is able to generate a profit.

Related article:

- Russian Aquaculture is recovering, after a dire year
 
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