Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — Investor Presentation (March 2023)
25 slides from Atlantic Sapphire Asa's investor presentation, Mar 16, 2023
Slide 1: Investor Presentation
Investor Presentation March 16, 2023
Slide 2: Disclaimer (I/II)
DISCLAIMER (I/II) Important information and disclaimer THIS PRESENTATION IS NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OF AMERICA AND THE DISTRICT OF
Slide 3: Disclaimer (II/II)
DISCLAIMER (II/II) Certain statements in this Presentation are forward-looking statements. These can be identified by the fact that they use words such as "ambition", "anticipate", "aspiration", "estimate", "expect", "project", "intend", "plan", "believe", "target", "may", "assume" and words of simi
Slide 4: Risk Factors Summary (I/II)
RISK FACTORS SUMMARY (I/II) SUMMARY OF RISK FACTORS Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Presentation, and in particular, the risk factors set out below. An investment in the Shares is suitable only for investors who unde
Slide 5: Risk Factors Summary (II/II)
RISK FACTORS SUMMARY (II/II) Risks relating to laws and regulations • The Group's business and operations is subject to extensive laws, regulations and permit requirements and the Group's failure to comply with such could negatively affect its business. Financial risks • The Group will require addit
Slide 6: Transaction Summary
Transaction Summary Key term sheet items Issuer Atlantic Sapphire ASA (“Atlantic Sapphire” or the “Company”) Shares outstanding 153,266,409 shares outstanding, each with a par value of NOK 0.10 and 1,584,491 share options outstanding (of which 776,037 are vested). Pre-money market cap Approx. NOK 1.
Slide 7: Atlantic Sapphire is at an Inflection Point
Atlantic Sapphire is at an Inflection Point Funds from equity raise estimated to secure Significant infrastructure improvements, funding to reach cash flow positive 1 2 including major biofilter upgrades and new in Phase 1 with a buffer water chiller system Expected to reach run-rate harvest Collabo
Slide 8: Announcing Collaboration Agreement with Nordlaks
Announcing Collaboration Agreement with Nordlaks Introduction to Nordlaks Collaboration summary ▪ One of the largest and most profitable2 family-owned salmon farmers ▪ Nordlaks has performed an operational and technical review of ▪ Significant experience with RAS - having built and currently operate
Slide 9: Offering Summary and Amendment of Debt Facility
Offering Summary and Amendment of Debt Facility Sources and Uses Amended debt facility overview Sources & Uses overview USDm Facility Status Pre amendment (USDm) Post amendment (USDm) Contemplated equity raise 50 Total DNB FC Expiry Total DNB Expiry Phase 1 Apr-23 Cash position (excl. undrawn RCF fa
Slide 10: Q4 2022 Highlights
Q4 2022 Highlights Upgrades in focus in Q4 2022 Biomass gain1 development ▪ As discussed in the November 2022 update, production 1600 was negatively impacted by higher-than-normal mortality ▪ Focus has been on heavy infrastructure upgrades and 1400 operational improvements, requiring feeding and 120
Slide 11: Major Upgrades About To Be Completed
Major Upgrades About To Be Completed Full Audit of Bluehouse Infrastructure to Reduce the Risk of Average temperature development (°C) Sedimentation and Anoxic Areas1 18 New chiller Sub-optimal chillers ▪ Critical to reduce the risk of producing gases that historically have system online Temperature
Slide 12: Significant Upside on Price Achievement
Significant Upside on Price Achievement US price achievement – premium fish (superior, Higher premium share expected with larger fish sizes ~3kg+) and fresh average – USD/kg RTF1 ▪ New customers including a leading, high-end sushi distributor, verifying strong demand and premium quality Bluehouse pr
Slide 13: Phase 2 Status
Phase 2 Status Phase 2 aerial view (February 2023) Phase 2 capex status as of December 31, 2022 ▪ Phase 2 is estimated to take the total run-rate production volume to 25,000t HOG annually ▪ ~USD 91m1 invested, cash conservation currently in focus ▪ Max. USD 10m in additional capex planned to be inve
Slide 14: Commissioned Phase 1 Facility and a Total Asset Value of USD 360m
Commissioned Phase 1 Facility and a Total Asset Value of USD 360m Atlantic Sapphire today Facility aerial view (February 2023) ✓ Unique and patented water intake and discharge ~520 capabilities ✓ Significant investments into construction of Phase +201% 1 facility and part of Phase 2 infrastructure,
Slide 15: Supportive Macro Trends for Atlantic Sapphire
Supportive Macro Trends for Atlantic Sapphire Analysts expect limited growth in global supply of salmon in foreseeable future and prices to 1 remain strong Covid has fast-forwarded consumer trends of preferring locally sourced food with strong 2 traceability and food safety attributes, further boost
Slide 16: Risk Factors (1/9)
RISK FACTORS (1/9) 1 RISK FACTORS Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Presentation, and in particular, the risk factors set out below. An investment in the Shares is suitable only for investors who understand the risks a
Slide 17: Risk Factors (2/9)
RISK FACTORS (2/9) The Group is also discussing a potential collaboration agreement with Nordlaks AS, one of the largest privately owned salmon farmers in Norway and one of the largest shareholders in the Company, where the parties intend to share knowledge about RAS systems and salmon farming to ad
Slide 18: Risk Factors (3/9)
RISK FACTORS (3/9) 1.1.5 The Group has a limited operating history and the Group's past financial results may not be indicative of its future performance The Group began operations in 2010 and has a limited history of generating revenue, especially in a steady state production phase. As a result of
Slide 19: Risk Factors (4/9)
RISK FACTORS (4/9) 1.1.8 The Group's intellectual property rights are valuable, and any inability to protect them could reduce the value of its business and products The Group's success depends in large part on its proprietary technology and patents, trade secrets, trademarks and other intellectual
Slide 20: Risk Factors (5/9)
RISK FACTORS (5/9) In addition, job candidates and existing employees often consider the value of the equity-linked awards they receive in connection with their employment. If the value of the Company's Shares declines, it may adversely affect the Group's ability to hire or retain highly skilled emp
Slide 21: Risk Factors (6/9)
RISK FACTORS (6/9) Construction work on Phase 2 at the Homestead Bluehouse is inherently subject to risk of delays compared to construction progress estimates set by the Company and Wharton-Smith from time to time (whether or not agreed as fixed construction deadlines and project milestones), includ
Slide 22: Risk Factors (7/9)
RISK FACTORS (7/9) 1.2 Risks relating to laws and regulations 1.2.1 The Group's business and operations is subject to extensive laws, regulations and permit requirements and the Group's failure to comply with such could negatively affect its business The Group's business and operations are subject t
Slide 23: Risk Factors (8/9)
RISK FACTORS (8/9) The availability of the committed terms loans for Phase 2 construction is, and will be following the amendments described above, subject to certain conditions prior to drawdown, including; (i) providing the lender with final design and plan for a fully funded Phase 2, (ii) a minim
Slide 24: Risk Factors (9/9)
RISK FACTORS (9/9) 1.4 Risks relating to the Shares 1.4.1 Future issuances of Shares or other securities may dilute the holdings of shareholders and could materially affect the price of the Share The Company may, in the future, decide to offer additional Shares or other securities to finance new cap
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