Atlantic Sapphire ASA: Incident in Atlantic Sapphire’s US facility

24 Mar 2021 07:05 CET

Company Name

ATLANTIC SAPPHIRE

ISIN

NO0010768500

Market

Oslo Børs

Symbol

ASA

Miami, Fl, Mar 23, 2021

On Tuesday, March 23, 2021, Atlantic Sapphire USA LLC, a wholly owned subsidiary
of Atlantic Sapphire ASA (the “Company”), had an incident in one of its grow out
systems at Miami facility. The other systems were unaffected.

The Company’s preliminary analysis, which remains subject to change, indicates
that an identified design weakness from its RAS supplier caused significant
amounts of particles to flow from the drum filters (particle filtration systems)
into the biofilters and trickling filters. This resulted in elevated turbidity
and possibly gasses; and caused abnormal fish behavior. Fish gathered at the
bottom of the tanks, disrupting the flow of new water, causing increasing
mortality.

The Company has, from a previous incident, identified an opportunity to ensure
undisrupted water flow by modifying the center drain design in all of its grow
out tanks. This work had already started prior to this incident. The center
drain in the affected system had not yet been modified. Keeping an undisrupted
water flow is critical to the operation of a RAS system.

As earlier communicated, the Company is in the process of splitting its US phase
1 grow out systems in half in order to reduce the impact of a potential
incident. Currently, four out of six systems have been split. The splitting of
the affected system has not yet been completed.

500 tons (HOG) of fish is expected to be lost, equivalent of around 5% of
annualized phase 1 harvest volumes, with an average weight of approximately 1kg.
The incident comes in addition to the temporary challenges due to maturation and
contractor workmanship but will not affect the continuity of supply to
customers.

For further information, please contact:

Johan E. Andreassen
Chairman, Atlantic Sapphire ASA;

Karl Øystein Øyehaug
Chief Financing Officer & Managing Director, Atlantic Sapphire ASA

investorrelations@atlanticsapphire.com

About Atlantic Sapphire ASA
Atlantic Sapphire is pioneering Bluehouse® (land-raised) salmon farming,
locally, and transforming protein production, globally. Atlantic Sapphire has
been operating its innovation center in Denmark since 2011 with a strong focus
on R&D and innovation to equip the company with technology and procedures that
enable the company to commercially scale up production in end markets close to
the consumer.

In the US, the Company has since 2010 worked to identify and permit the ideal
location for Bluehouse® farming in Miami, Florida. The Company is close to
completion of its phase 1 build out which is projected to harvest approximately
10,000 tons of salmon annually and performed its first commercial harvest in the
US in September 2020. The Company has secured the key US water permits to
produce up to 90,000 tons onsite, and has a targeted harvest volume in 2031 of
220,000 tons.


Source

Atlantic Sapphire ASA

Provider

Oslo Børs Newspoint