Aquaculture company Atlantic Sapphire entered into a bridge loan agreement for an aggregate amount of up to $10 million, according to a company statement on March 28.
This funding is being provided by an investor group and is structured to be payable in two tranches of $5 million each.
The loan carries an interest rate of 12 per cent per annum and includes an origination fee of 15 per cent of the principal.
Under current terms, the facility matures on May 15, 2026, though this date may be extended if the parties reach an agreement on a potential refinancing.
This liquidity injection follows reports that the company sought between $20 million and $30 million in new capital to avoid a technical default on its debt. Atlantic Sapphire noted that these funds were necessary to maintain compliance with financial covenants after facing operational setbacks.
The company's board of directors noted that the capital provides necessary stability while broader discussions regarding the future of the company continue.
Refinancing talks are progressing with an investor group representing approximately 63 per cent of the shares and 93 per cent of the outstanding convertible debt.
This group indicated it might launch a voluntary tender offer for all outstanding shares not already under its control as part of a broader agreement.
The company has entered a non-binding term sheet where the indicated offer price rose from NOK0.50 ($0.05) to NOK0.80 per share. The terms of this potential refinancing and the launch of the mandatory offer remain subject to ongoing discussions between the involved parties.
No binding agreement has been concluded at this stage, but the company stated it will provide further updates as appropriate.