Proximar receives debt financing offer of JPY 8.8bn from a syndicate of two large Japanese banks

13 Feb 2023 07:32 CET

Bergen, Norway/Yokohama, Japan – 13 February 2023

Proximar Seafood AS (“Proximar”) has, through its subsidiary Proximar Ltd.
(Japan), received a loan offer from a syndicate consisting of two large Japanese
banks for a corporate loan of JPY 8.8 billion (NOK ~680 million). The offer
consists of a Highly Confident Letter along with a term sheet (the “Term
Sheet”). Subject to final approval, Proximar will consequently secure the
complete debt financing according to the targeted capital structure for its
first land-based salmon farming facility outside Tokyo, Japan.

“We are delighted to finally see the entire debt financing now coming in place
for our stage 1 facility. Proximar has evaluated multiple debt financing
alternatives over the last two years and the offer represents the company's
preferred option for debt financing in line with our targeted debt ratio. To
obtain a complete debt solution for both the construction and operating phases
at attractive terms, marks a breakthrough for the company,” says Joachim
Nielsen, CEO of Proximar.

A Highly Confident Letter is typically issued in Japan after a substantial part
of the due diligence is completed and at the time when the execution risk is
assumed minimal. The loan offer implies that Proximar will reach its ~45 percent
debt ratio ambition.

Highly Confident Letter
The Highly Confident Letter and Term Sheet received by Proximar have been
approved internally in the two banks. It is therefore to be considered a strong
statement of comfort from the banks to provide the financing according to the
received Term Sheet.

The loan offer is structured as a syndicate, fully covered by the two involved
banks. The loan is considered to be offered at attractive terms with an interest
rate below 5% and addresses both the remaining construction financing as well as
operational financing.

The offer is subject to customary conditions such as final credit committee
approval, legal due diligence, and completion of loan documentation.
Disbursement of the first part of the loan is scheduled for March 2023 and the
second during summer 2023, at the time of take-over of the post-smolt grow-out
building.

Construction and production both on track
The first batch of eggs, which was inserted into the facility in October,
thrives in the first feeding department. Currently three batches are in
production and performing well and in accordance with expectations. Going
forward, Proximar expects new batches to arrive monthly, enabling continuous
harvest from medio 2024.

Meanwhile, the construction work of the post-smolt grow-out building is
progressing as scheduled. Currently, installation of tanks and RAS-equipment is
ongoing. The entire facility is expected to be finished in the third quarter of
2023.

For more information, please contact:
Pål K. Grimsrud, CFO, +47 99 47 75 99, pkg@proximar.com
Joachim Nielsen, CEO, +81 70 2811 9898, jn@proximar.com

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

About Proximar Seafood
Proximar Seafood is a Norwegian land-based salmon farming company with its first
production facility and production at the foot of Mount Fuji in Japan. The
company inserted its first batch in October 2022. Through land-based fish
farming, using high-quality ground water secured close to Mount Fuji, the
company will produce fresh Atlantic Salmon, harvested the same day. Proximar’s
location, near one of the world’s most important fish markets, implies
significant advantages, both in terms of reduced cost and carbon footprint.

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