Alternative protein producer Pronofa ASA raises equity capital of NOK 150 million. At the same time, Reitan Kapital AS has become a strategic owner in the development of the nutrients of the future for the feed and food industry.
- Pronofa develops new alternative proteins for the feed and food industry from local sustainable sources. This is to be a response to the increased need for proteins and other nutrients. Pronofa is a spin-off company from Denofa AS, Norway's largest producer of vegetable proteins and oils for the feed and food industry.
This is the largest in Norway investment industrial into new sustainable proteins for feed production, as well as for applications in food protein supplements, chitin and fertilizers. The company plans to produce it on an industrial scale in 2023.
Worldwide insect production is increasing and will soon increase
Profona has already acquired the insect producers Flying Feed and Ecoprot. These companies have long researched and developed Black Soldier Fly high-protein products. From compost and bio-waste, Pronofa can produce the high-value product that agriculture and the aquaculture industry need. Worldwide insect production is increasing and will soon increase.
In addition to producing insects, Pronofa tests tunicates (small protein-rich molluscs grown in marine plantations) and other marine protein sources. The goal is to have a broad portfolio of proteins.
The company completed a new equity issuance of NOK 150 million, which will be allocated to the further development of the company. In this latest capital raising, Reitan Kapital contributed NOK 42 million and thus owns 10 percent of the company. Denofa AS (31%) and Canica (10%) decided to retain their shares, participating in the issuance of NOK 46,5 million and NOK 15 million, respectively. In addition, the company took over Sinkaberghansen AS and several companies from the Grieg family as new investors in this issue. A number of existing shareholders also participated in this financing round, including Kreano AS (Bjørge Gretland, CEO of Pronofa), Six-Seven AS (Haakon Sæter, member of the Board of Pronofa), Macama AS and Farvatn Private Equity.
The company is very pleased with the shareholding structure after the last share issue and now has several investors who occupy a central place in the value chains in which the company's products are to be traded.
Sustainable proteins in animal feed can help reduce greenhouse gas emissions
Globally, the food industry is responsible for about 1/3 of the world's greenhouse gas emissions. Sustainable proteins in animal feed are one instrument that can help reduce emissions. Magnus Reitan, CEO of Reitan Kapital, says this is an important reason why the company has decided to take the ownership side of Pronof.
- We want to actively contribute to the green transformation. We have great faith in Pronof's future prospects and want to help make the transition to a more sustainable animal feed. We see significant potential in the use of alternative proteins in our own chicken production. In this way, we introduce new, optimally balanced sources of protein in chicken feed, he says.
Through Reitan Retail, REITAN owns the chicken producer Norsk Kylling. The company supplies chicken products under the Solvinge and Stange brands to REMA 1000.
Norsk Kylling has been cooperating with Pronofa for a long time. Through this investment, he will join the management board of Pronof and will actively participate in the further development of the company.
Source: Pronofa
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