The Swedish subsidiary of PRFoods Ltd has won a major court victory and is increasing fish farming capacity. PRFoods signs a bridge financing agreement with a majority shareholder.
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Överumans Fisk AB, a 100% subsidiary of PRFoods, obtained an additional license in 2020 in Gaskeloukti, Västerbotten County, Sweden. The license gave the right to use 2,400 tonnes of feed, which would result in a production of 2,200 tonnes of fish. The license was contested by local residents and Överumans Fisk AB itself for additional feed tonnage.
The Land and Environmental Court issued a verdict not to accept the challenge from local residents. Överumans Fisk AB’s complaint was fully accepted and the amount of feed was increased to 3600 tonnes. The verdict is valid (it can be challenged in the Supreme Court, but it will not stop the validity of the permit) and Överumans Fisk AB can use the new permit as early as 2020 and the company has already started the necessary investments to increase the amount of ‘food.
The Gaskeloukti site requires investments amounting to 2.5 million euros. A new license will allow Överumans Fisk to increase its sales by 3.5 times compared to previous years from 2022 or 2023 and, depending on fish prices, additional sales of 13 to 15 million euros per year .
PRFoods Ltd also signed a $ 1 million bridge financing loan with majority shareholders Amber Trust II SCA to strengthen working capital and fish farming capacity. PRFoods has taken a strategic direction to increase fish farming in the group with the aim of becoming the largest rainbow trout producer in the region in 2-3 years.
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