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AKVA signs $130-M land-based agreement


June 12, 2020
By Nestor Arellano


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AKVA group AS announced that it has signed a non-binding agreement with Norwegian engineering firm AquaCon AS for a potential supply of equipment, engineering and design to a new land-based grow-out facility in the United States.

The facility will be located in Eastern Shore, Maryland. The planned facility will have the capacity to produce 1500 metric tons of salmon.

If awarded, the contract is expected to have a minimum value of $130 million, according to a press release from AKVA.

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AKVA’s participation in the project is subject to AquaCon AS obtaining the necessary financing for the project and agreement on a final contract.

The project and AKVA’s deliveries are expected to be completed by 2023. The Term Sheet is expected to remain effective until December 31 this year.

AKVA will participate with $3.3 million in equity in the project if sufficient further financing is achieved and will also provide a convertible loan in the amount of $561,382 as bridge financing until the financing of the project has been completed.