Kaldvík shares fall 40% in latest First North trading

Shares in fish-farming company Kaldvík fell 40% in the latest trading on the First North market this week, mbl.is reported. They now trade at 33 Icelandic krónur, down 72% from their peak of 117 krónur in January.

Trading on First North is limited and can be sporadic, meaning relatively few transactions can cause large price movements. Kaldvík is also listed on Euronext Growth in Oslo, where its shares stood at 2.7 Norwegian kroner on Friday, down nearly 71% from a peak of 9.3 kroner in mid-January.

The company has faced operational setbacks at its fish farms in the Eastfjords, most recently extensive fish mortality caused by jellyfish. Because lenders hold security partly in future production, the incident affected loan terms and led to negotiations. At the end of last month, Kaldvík announced an agreement with lenders and shareholders on support and guarantees for refinancing. A share issue planned before the end of the year is expected to provide 70 million euros, or about 9.5 billion Icelandic krónur, in net cash.

Chief executive Vidar Aspehaug said the company would not comment on share-price movements or their possible causes. He said a recent decision by the Environmental and Natural Resources Appeals Board to reject requests to revoke Kaldvík’s operating permits in Seyðisfjörður while related appeals are considered would not affect the company’s current plans there. Kaldvík does not expect to begin operations in the fjord soon: one required permit is still outstanding, and extensive preparations remain. Aspehaug said any future operations would comply with the permits and applicable laws and regulations.