Fjord Seafood raises needed capital

Troubled Fjord Seafood ASA has managed to raise badly needed capital through a new share issue.

Troubled Fjord Seafood ASA has managed to raise badly needed capital through a new share issue. The company also won some relief from its primary bank.

Fjord Seafood reported Tuesday in a message to the Oslo Stock Exchange that it had raised NOK 97 million (USD 14m) from private and institutional investors.

The equity offering bought by the investors involved 36.4 million shares sold at NOK 2.75 each.

Chief executive Helge Midttun said the funds will strengthen Fjord Seafood's financial position and boost liquidity.

The company also secured an interest rate reduction on company debt from its main bank, Nordea, formerly Kreditkassen. The rate cut will save Fjord Seafood nearly NOK 10 million in financing costs.

Fjord Seafoods has been burdened with heavy debt and hard times in the seafood business. The company has posted heavy losses, but recently has enjoyed some relief from higher prices for salmon.

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