First half year highlight oProject is developing according to plan - on time and budget. First eggs in Q4 2021 and first harvest in Q4 2023 oUpscaling of business plan to 20,000 tonnes oDesign package and site preparation completed in Q1 2021. Construction start on hatchery facility in Q2 2021 oSigned agreement withXiangshan Strait Economic & Technological Cooperation Co., Ltd , for a 10 + 10 years' lease of land, infrastructure and facilities oSigned banking agreement withBank of Ningbo for working capital facility ofRMB 35 million (DKK 34 million ) oAvailable cash ofDKK 374 million and total undrawn credit facility atEUR 25 million (DKK 186 million ) as of30.06.2021 Development of Stage 1 onGaotang Island has been running on one time and on budget since the project commenced. FromApril 2021 , focus has been on construction start on the facility for the hatchery and RAS 1, 2 and 3. The facility will also include administration and other support functions. InJuly 2021 , the local authorities started construction of the hatchery according to the lease agreement. The process is well under way and on time for completion and first introduction of eggs in Q4 2021.Longyuan Construction Group Co. Ltd. , 0ne of the leading construction companies inChina , is the main contractor for all infrastructure, utilities, and facilities. Total capital expenditure during the first half year wasDKK 12 million , all related to AKVA Group RAS technology. Capex will gradually increase as construction accelerates. As per30 June 2021 , accumulated capex wasDKK 18.5 million . At the same time, the company had available cash ofDKK 374 million and total undrawn credit facility atEUR 25 million (DKK 186 million ). Throughout the planning phase,Nordic Aqua Partners has optimized the design, which allow for expansion up to 20,000 tonnes annual production on existing land, up from previously 16,000 tonnes. The local government is providing dedicated backing of the project, which has materialized in an attractive 20-year lease agreement where the government provide land area and construction of all infrastructure and building for a very attractive fixed monthly rental fee. This significantly reduces the capex risk toNordic Aqua Partners, as any possible cost overruns on the building side is with the landlord. The lease agreement is for an initial 8,000 tonnes, but a Letter of Intent to expand the annual capacity to reach 20,000 tonnes on current location and contracted land area is in the process of being signed. Expansion is expected to be done at similar lease terms as Stage 1 and 2. During the quarter,Nordic Aqua Partners signed a banking agreement withBank of Ningbo for working capital facility ofDKK 34 million . Combined with current cash position ofDKK 374 million and an undrawn debt facility ofDKK 186 million , the company is fully funded to reach 4,000 tonnes, and expects that cash flow from operations and new debt will be sufficient to bring production up to 8,000 tonnes. Commenting on the development, ChairmanRagnar Joensen , said: "It is exciting to see the quick pace of development at the construction site inGaotang Island , which really kicked off in July. We are very happy with the dedicated support shown by local authorities, which have delivered on time and with a committed interest in ensuring steady progress. The Letter of Intent under negotiation for expansion of the leasing agreement means that we potentially have funded 30-40% of total capex for growth up to 20,000 tonnes. That puts us in a unique position to deliver fresh salmon to the Chinese market in 2023", says Joensen. OutlookNordic Aqua Partners secured the necessary equity funding for expansion up to 8,000 tonnes when the company was listed in Q4 2020. The project has been progressing on time since inception, and first eggs are expected to be introduced in Q4 2021. With a two-year production cycle, that allows for first harvest first harvest in Q4 2023. The organization now counts 15 employees, and the company continues to recruit both foreign and local expertise, management and staff to fill the many positions needed to meet our ambitious expansion and development plans. As a local farmer ofAtlantic salmon in the Chinese market,Nordic Aqua Partners are focusing on the domestic salmon market and how that is expected to develop. The company will be able to offer sustainable and locally farmed fresh salmon on a 24/7 flexible delivery plan, with full traceability from egg to fully grown salmon, thus guaranteeing quality, food safety and freshness. It is the company's view that a locally produced salmon could achieve a premium pricing on top of the cost advantage, when considering freshness and 24/7 delivery capacity which eliminates importer risk of having to place spot orders ahead of sales being secured. Result presentationNordic Aqua Partners will present its first half year 2021 results by webcast, followed by a Q&A session, onFriday, August 20, 2021 at9:00 a.m. CEST . The presentation and subsequent Q&A will be in English byRagnar Joensen ,Chairman Nordic Aqua Partners ,Hjalti Hvítklett ,CFO Nordic Aqua Partners , andOve Nodland , CEO Nordic Aqua Ningbo. The presentation can be accessed at www.nordicaquapartners.com, or with the following link: https://streams.eventcdn.net/nordicaquapartnersas/2021-h1/register For further information please contact: Hjalti Hvítklett,CFO Nordic Aqua Partners hjalti@nordicaquapartners.com +298 221222 AboutNordic Aqua Partners Nordic Aqua Partners is a Nordic land-based salmon farming company, using cutting-edge Nordic technology and expertise to set up the first fully integrated and commercially scaled Recirculating Aquaculture System [RAS] farm forAtlantic salmon located inNingbo, China . With operations in place, theNordic Aqua Partners will be the first local producer of truly sustainable salmon to the Chinese market, positioned to deliver fresh and locally farmedAtlantic salmon. The current business plan is for an annual production of 20,000 tonnes HOG. Nordic Aqua Partners A/S is listed at Euronext Growth under the ticker NOAP. To learn more, please visit http://www.nordicaquapartners.com This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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