Atlantic Sapphire ASA First Half 2025 Results: Decisive Turnaround – Phase 1 Validated and Profitability in Sight

31 Aug 2025 20:59 CEST

Miami, August 31, 2025

Highlights from the first half of 2025
• H1 2025 revenue nearly doubled to USD 21.5m vs. H1 2024, reflecting a nearly
doubling in average prices and harvest weights
• Record biological performance with 97% superior share, low mortality, stronger
feeding and steady biomass gain
• EBITDA loss narrowed to USD -30.7m from USD -46.6m in H1 2024
• Revised business plan improves capital efficiency, lowers risk and accelerates
path to breakeven with first positive EBITDA expected in late 2026
• 2025 harvest volume expected at ~5,400 tons HOG, up ~25% vs. 2024
• 2026 volume expected at ~7,000 tons with further optimization of Phase 1
thereafter to reach ~7,500-8,500 tons and $3-5 EBITDA/kg
• Phase 1 validation to unlock high-margin, value-accretive Phase 2 expansion
targeting EBITDA of $4-6/kg on ~25,000 tons

Subsequent events
• Atlantic Sapphire ASA (the “Company”, and together with its consolidated
subsidiaries, the "Group") intends to raise a new Convertible Loan of USD 31-35
million, which together with certain adjustments to the Company’s bank debt
financing with DNB Bank ASA, is estimated to fund the Company through to
break-even for Phase 1 of the Group's Homestead Bluehouse.
• In connection with the contemplated new Convertible Loan of USD 31-35 million,
certain large existing shareholders represented on the Board of Directors have
indicated their strong support to underwrite USD 25 million. The Company has
further received commitments from certain other existing investors to invest
approximately USD 7 million in the Convertible Loan, such that the total amount
of indicative support and pre-commitments totals approximately USD 32 million.

Comment from CEO Pedro Courard
“The first half of 2025 marked a decisive shift for Atlantic Sapphire.
Operations are now stable, biological performance is at record levels, and
financial results are improving. With harvest weights nearly doubled, superior
share consistently high, and prices of $12/kg for our premium Bluehouse™
product, our platform is now demonstrating its full potential.
We have finalized a revised business plan requiring only USD 3 million of
additional capex, with materially lower operating costs. Positive EBITDA is
expected by the end of 2026 and will continue improving thereafter. To support
this last phase of Phase 1 optimization, we are preparing a flexible financing
solution structured to fully fund Atlantic Sapphire through to breakeven of
Phase 1 and has the strong backing of our main owners.”

Operational and Financial Review
Harvest volumes in the first half of 2025 reached 2,486 tons HOG, a 4% increase
versus the same period last year. Average harvest weights for the first half of
2025 improved to 2.86kg, with Q2 average harvest weight at 3.1kg, while the
average sales price increased to $8.67/kg, up 88% and 86%, respectively, versus
H1 2024. Biological indicators — including superior share, mortality, feed
conversion, and biomass gain — continued to strengthen, reflecting disciplined
SOP execution and systematic removal of bottlenecks.
Revenue nearly doubled year-on-year to USD 21.5 million, driven by improved
price achievement and higher volumes. Operating costs decreased despite legacy
system constraints, and the operating loss was reduced by USD 13.9 million
compared to H1 2024. Net cash flows from operations and investments were
significantly lower compared to the previous year, supported by improved
operational performance and reduced Phase 2 spend respectively. The equity ratio
stood at 66.7% at period end, with all covenants under the amended credit
facility in compliance.
Phase 2 construction remains paused, with activities limited to design,
engineering, and optimization.

Revised Business Plan
The updated plan targets ~7,000 tons of harvest volume in 2026, rising toward
7,500–8,500 tons thereafter. Compared to the previous plan, capex has been
reduced to USD 3 million and is focused on high impact projects related to CO₂
removal, water treatment, and energy efficiency. Substantially lower operating
costs on the back of improved staffing, energy efficiency, increased volumes and
operational discipline are expected to result in an EBITDA cost of $10/kg in the
near-term. EBITDA breakeven is expected in late 2026, with Phase 1 seen
generating $1–2/kg of EBITDA in the near-term, with $3-5/kg feasible in an
optimized Phase 1 environment.
More information about the Revised Business Plan and the contemplated financing
round (as described below) can be found in the H1 2025 presentation.

Contemplated funding round to reach EBITDA break-even
As previously announced in the February 2025 update, the biomass adjustment
prioritizing increased harvest weights delayed the timing for EBITDA break-even.
While the Company is now seeing the positive results of those adjustments, the
Company recognizes the need for additional capital to realize the profitability
potential of Phase 1. As such, the Company is now contemplating the issuance of
a new convertible loan of USD 31-35 million (the “Transaction”). This, together
with certain amendments in the loan agreement with DNB Bank ASA, is estimated to
fund the capex and operations of the Company until reaching EBITDA break-even of
Phase 1, with a contingency.

Contemplated issuance of a new Convertible Loan:
In connection with the contemplated issuance of a new USD 31-35 million
Convertible Loan, the Company has received strong support to underwrite USD 25
million from its BoD Shareholders, being Nordlaks Holding AS (for a loan amount
of USD 11 million), Condire Management LP (for a loan amount of USD 11 million)
and Strawberry Capital AS (for a loan amount of USD 3 million). Certain other
existing shareholders have further committed to subscribe for approximately USD
7 million in the Convertible Loan, such that the total amount of indicative
support and pre-commitments totals approximately USD 32 million. The Company
will seek to complete the issuance of the Convertible Loan in the time to come
and will update the market in due course.
To ensure necessary financing until the contemplated Convertible Loan is
completed, the Company has entered into a bridge loan agreement of USD 6 million
with the BoD Shareholders (the “Bridge Loan”). The Bridge Loan is expected to be
rolled over into the Convertible Loan (including PIK interest and origination
fee) upon completion of this transaction (the “Bridge Loan Rollover”).
Further, the key terms of the contemplated Convertible Loan are expected to
include the following:
• Maturity: 5 years.
• Interest rate: 10.00 per cent. per annum, payable-in-kind by capitalization to
the outstanding principal amount ("PIK Interest") semi-annually in arrears.
• Conversion price: NOK 10.00, subject to customary anti-dilution mechanisms.
• Conversion Period: Commencing one year after utilization date and ending on
tenth business day prior to Maturity Date or any earlier date fixed for
repayment of the Convertible Loan.
• Conversion incentive in a Qualifying Equity Raise: Upon any equity raise by
the Company with gross proceeds of at least USD 100,000,000 (a "Qualifying
Equity Raise"), each Lender that exercises its Conversion Rights within 20
business days following registration of such equity raise with the Norwegian
Register of Business Enterprises (Nw. Brønnøysundregistrene) shall be entitled
to receive one additional Share for every three Shares issued upon conversion,
credited as fully paid at no additional cost to such Lender.
• Conversion of Existing Convertible Loan: The Company has agreed to exchange
Condire's Existing Convertible Loan in the principal amount of USD 20,000,000
plus accrued interest into the Convertible Loan at 80% of the outstanding
principal amount plus accrued interest at the time of exchange with the effect
that the Company's obligation under the Existing Convertible Loan will be nil
and the increased obligation under the Convertible Loan will be 80% of the
Existing Convertible Loan. Condire's participation in the Convertible Loan is
further conditional upon the general meeting of the Company approving the
exchange of the existing convertible loan into the new Convertible Loan.
• Underwriting fee: Under certain conditions, the investors in the Convertible
Loan will receive a fee of 15% payable in kind and capitalized to outstanding
principal amount.
• Capitalized Amounts: In addition to the cash proceeds described above, the
following amounts will be capitalized to the principal of the Convertible Loan:
i) PIK Interest and origination fee of 10% accrued under the Bridge Loan; ii)
underwriting fee payable under the Convertible Loan; and; iii) as described
above, the Existing Convertible Loan will be exchanged into the Convertible Loan
at 80% of the outstanding principal amount plus accrued interest of the Existing
Convertible Loan at the time of exchange.
• Conditions precedent: Approval by the extraordinary general meeting of the
Company and certain other usual and customary conditions precedents.

Adjustments to bank financing package:
Pursuant to raising a Convertible Loan of USD 35 million, DNB Bank ASA (the
“Lending Bank”) has credit approved certain amendments to the current loan
agreement, including i) adjusting of covenants, ii) release of parts of the
restricted cash under the current loan agreement, iii) adjusting maturity date
to July 2027 and iv) delayed instalments.
DNB Carnegie, a part of DNB Bank ASA, has been engaged as Advisor for the
Company in connection with the contemplated Transaction.
More information about the contemplated Transaction will be provided in due
course.

Outlook
Atlantic Sapphire enters the second half of 2025 with a clear roadmap to
breakeven and self-funding operations. Harvest volumes are expected to reach
~5,400 tons this year, rising to ~7,000 tons in 2026. Core biology is validated,
operations are stable, and financing is in progress.
The contemplated convertible loan, strongly supported by the Company’s largest
shareholders, is expected to provide a sufficient buffer to fund operations
through breakeven. With Phase 1 now delivering consistently improving
operational and financial results, Atlantic Sapphire is positioned to complete
its turnaround and unlock the next stage of value accretive growth, with Phase 2
expansion targeting harvest volume of 25,000 tons and EBITDA of $100-150m per
annum.

Presentation of results
On Monday 1 September at 7:00 a.m. CET (1:00 a.m. EST), the company will host a
webcast to present the results. The webcast can be accessed via the following
link: https://bit.ly/41rmpfe
Investors are invited to submit their questions via email at
investorrelations@atlanticsapphire.com, with the company aiming to respond to
questions in a timely manner.

For further information, please contact:
Pedro Courard,
CEO, Atlantic Sapphire ASA

Gunnar Aasbo-Skinderhaug
Atlantic Sapphire ASA, Deputy CEO/ CFO
Email: gunnar@atlanticsapphire.com, investorrelations@atlanticsapphire.com

About Atlantic Sapphire ASA:
Atlantic Sapphire is pioneering Bluehouse® (land-raised) salmon farming,
locally, and transforming protein production, globally. Atlantic Sapphire
operated its innovation center in Denmark from 2011 until 2021 with a strong
focus on R&D and innovation to equip the Company with the technology and
procedures that enable the Company to commercially scale up production in end
markets close to the consumer.  In the US, the Company holds the requisite
permits and patents to construct its Bluehouse® in an ideal location in
Homestead, Florida, just south of Miami. The Company's Phase 1 facility is in
operation, which provides the capacity to harvest up to approximately
7,500-8,500 tons (HOG) of salmon annually. The Company completed its first
commercial harvest in the US in September 2020. Atlantic Sapphire is currently
developing its Phase 2 expansion, which will bring total annual production
capacity to 25,000 tons and has a long-term targeted harvest volume of >100,000
tons.

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act. This information is considered to be
inside information pursuant to the EU Market Abuse Regulation and is subject to
the disclosure requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act. This information was submitted for publication, through the agency
of the contact persons set out above, on the time and date provided.

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654339_250831 Atlantic Sapphire first half 2025 report.pdf
654339_250831 Atlantic Sapphire first half 2025 presentation.pdf