🇮🇸 LAXEY, formerly Icelandic Land Farmed Salmon, completes an EUR 42 million capital increase

September 15, 2023

Press relese from Laxey

LAXEY - Sustainable aquaculture on land

  • Land based salmon farming with 32 thousand tons capacity
  • Westman Island based seafood family with 75 years heritage – as anchor investor
  • Hatchery to start operation by end of 2023
  • Production in grow-out tanks to commence in 2024

Westman Islands, Iceland, 14th September 2023.

The Icelandic land-based salmon company LAXEY, previously named Icelandic Land Farmed Salmon, has completed its first phase of equity capital increase of EUR 42 million.

LAXEY has already commenced the construction of its fish farming facilities in Westman Islands, an archipelago off the south coast of Iceland. The project consists of a hatchery and a grow-out facility.

The company will produce 27 thousand HOG (Head On Gutted) tons of farmed Atlantic Salmon by 2031 with construction in 6 sections, while in comparison the current production of land-based salmon in Iceland is less than two thousand tons.

The first section will be operational by mid-2024 and sales of salmon should start late 2025. The first section will be cash-flow positive as a stand-alone operation, with each additional section increasing efficiency of production, with lower investment cost and operational cost per kilogram produced.

Unique conditions in the Westman islands

Conditions for land-based salmon farming are very good in the Westman Islands. A stronghold of the Icelandic fishing industry, the islands have a strong tradition for, and deep knowledge of, protein production and seafood export. The infrastructure is strong, the community is cohesive, and access to talent and know-how in food production is very good. In addition, emphasis will be placed on shipping fish to market by sea, lowering the carbon footprint of the salmon.

LAXEY has been successfully introduced in the community and the municipality has shown strong support for the project. When fully operational, LAXEY will employ over 100 people all year round, as well as creating a number of derived job opportunities.

Value creation through environmental emphasis

Demand for farmed salmon is growing steadily worldwide, due to increased emphasis on healthy lifestyles, an expanding middle class world-wide, and increased emphasis on sustainability in food production. Great emphasis has been placed on careful preparation of the project, and a thorough assessment of the environmental impact.

LAXEY will base its production on 100% renewable energy sources, and will recycle biological waste for fertilizer production. The fish farm will use a hybrid flow-through system where about 65% of the sea is reused, while 35% is fresh sea water, pumped from boreholes in the area, at optimal water temperatures for salmon farming.

Strong local anchor investors

The company was established by a group of entrepreneurs, led by a local family with over 75 years history in the seafood industry, extensive know-how and a strong reputation. The family has recently sold their seafood companies and is re-investing in this land-based salmon farm as anchor investor.

Lárus Ásgeirsson, chairman of LAXEY:

„We are extremely proud of reaching this milestone, and appreciative of the trust our investors have shown by participating in this unique project. Our team has been preparing this project since 2019 and we see great opportunities in the production and sale of Icelandic land-farmed salmon from the Westman islands. The location offers ideal conditions for producing high-quality fish products through superior know-how and a strong talent pool, which is a key factor in this sector.”

Mar Advisor were sole financial advisor to Icelandic Land Farmed Salmon in this local funding round. The company offers tailor-made advisory services to corporate clients globally, specializing in the seafood, energy, and infrastructure sectors.

As construction progresses, the company will seek new stakeholder partnerships and capital in the Nordic and international capital markets. For that purpose, LAXEY has brought in Norway headquartered investment bank Arctic Securities as sole global coordinator and bookrunner, with Mar Advisors continuing as financial advisor to the company.

For further information contact:

Lárus Ásgeirsson, stjórnarformaður

Email: [email protected]

Tel: +354 867 0449

Originally published on 15 September.