Atlantic Sapphire

Legal Proceedings Report • May 10, 2022

Atlantic Sapphire ASA: Denmark insurance settlement

Atlantic Sapphire ASA: Denmark insurance settlement

Miami, FL, May 10, 2022

With reference to previous stock exchange announcements, Atlantic Sapphire ASA (the “Company” or “Atlantic Sapphire”) today announces that the insurance settlement after the fire in the Company's plant in Denmark on September 15, 2021, has been successfully concluded. The Company has agreed on a cash settlement of DKK 180 million.

The book value at the time of the fire was DKK210m (approximately USD33m at the exchange rate in September 2021) and the insurance process has identified approximately DKK30m of buildings and equipment that was undamaged by the fire. In addition, the Company has permits, a long-term land lease and a tax loss carry-forward.

The Company is free to decide how the insurance proceeds are to be used. The board has decided that the settlement proceeds are to be allocated to US operations and construction.

In the meantime, the board will continue to review the Company’s strategy for its Danish operations.

Atlantic Sapphire’s core business is expanding production in the US where the Company sees the highest return on investment. The Company has now ensured stable operations in the US and is in the middle of a significant expansion of the production capacity.

The current situation in the world further emphasizes the importance of short and lean value chains. In the US, the Company is perfectly positioned to leverage this. The US is currently importing approximately 98% of its consumption of Atlantic salmon and the Company believes there will be an increasing focus and preference for domestically produced food in the years ahead.

For further information, please contact:

Johan E. Andreassen

Chairman, Atlantic Sapphire ASA, and CEO, Atlantic Sapphire USA LLC;

Karl Øystein Øyehaug

Managing Director, Atlantic Sapphire ASA, and Chief Financing Officer, Atlantic Sapphire USA LLC

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 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 has identified and obtained the requisite permits to construct its Bluehouse® in the ideal location in Homestead, Florida, just south of Miami. The Company has completed Phase 1 construction, which provides the capacity to harvest approximately 10,000 tons (HOG) of salmon annually. The Company completed its first commercial harvest in the US in September 2020. Atlantic Sapphire is currently constructing its Phase 2 expansion, which will bring total annual production capacity to 25,000 tons, and has a targeted harvest volume in 2031 of 220,000 tons.