Atlantic Sapphire operates land-based salmon farms, most notably its Bluehouse facility in Miami-Dade County, Florida, focused on cultivating Atlantic salmon. The company is attempting to scale inland aquaculture but has faced persistent operational challenges controlling recirculating water temperatures. Those cooling issues have hurt biomass gain and contributed to an 18% fall in the company’s share price earlier this year. To manage temperatures, the company has been using rental chillers as a temporary mitigation. Atlantic Sapphire recently secured additional funding intended to support operations and reach break-even prior to interest, taxes, depreciation and amortization for the first phase of the Miami-Dade Bluehouse. The company’s near-term plans center on resolving the thermal-control problems and deploying the new capital to stabilise the facility’s economics. Atlantic Sapphire operates on‑land Bluehouse facilities to farm salmon and is developing Phase 2 of its Homestead, Miami site. The company expects Phase 2 completion to increase US annual harvest to an estimated 25,000 gutted weight tonnes. Phase 2 has a current capital expenditure estimate of $275–300m, of which $70m has already been invested. Atlantic Sapphire announced a private placement of new shares to raise approximately $125m to fully fund the remaining equity financing for Phase 2. Proceeds will also be used to repay a $25m debt facility and for general corporate purposes. The placement is directed toward Norwegian and international investors, and several directors have pre‑committed to buying shares. Atlantic Sapphire develops land‑based recirculating aquaculture system (RAS) facilities to produce Atlantic salmon, targeting up to 220,000 tonnes from its Florida site. The company operates an existing 390,000‑square‑foot hatchery and grow‑out facility and plans to add a 1.1‑million‑square‑foot manufacturing, fish‑processing, engineering services and world headquarters complex by 2022. Its Redland campus buildout is being executed in three phases; the recent funding is intended to begin the second phase. Miami‑Dade County has offered a conditional grant under its Targeted Jobs Incentive Fund Program to support the project. The company’s expansion is tied to a pledge to create 237 jobs paying at least $60,000 annually (excluding benefits) within three years. Atlantic Sapphire has indicated it is also considering alternative locations in Georgia, Texas and Maine but has not detailed potential changes to its Florida investments.

Total raised

$80M

Funding rounds

3

Latest round

Equity

Latest activity

Sep 2023