King Salmon boss steps down after 13 years
NZ King Salmon Investments, which is facing headwinds as warmer waters kill its fish, says its chief executive has resigned.
Grant Rosewarne, who has been chief executive since 2009, is resigning with immediate effect, chairperson John Ryder said in a statement to the New Zealand stock exchange.
Ryder said Rosewarne had made a significant contribution to NZ King Salmon, including leading the company through its public listing on the sharemarket and the creation of the premium Ora King brand. He had guided the company through recent challenges, including the Covid-19 pandemic, and led a significant effort to obtain new waterspace to enable future growth, Ryder said.
NZ King Salmon wants to set up the country’s first open ocean salmon farm in colder Cook Strait waters, as it has been forced to fallow three of its farms in Pelorus Sound after rising sea temperatures last summer killed a significant amount of fish.
The company expects to hear whether its Blue Endeavour proposal has been approved at the end of this month.
If consent were granted, harvesting wouldn’t occur until at least the 2027 financial year. NZ King Salmon reported a $24.5 million loss in the first half of its current financial year to July 31. Last financial year it reported a $73m loss, after writing down the value of its assets by $59m and changing its farming practices to cut back on the use
of its warmer sites over summer.
The fish deaths put NZ King Salmon under financial pressure last year – its debt ballooned, and it breached its banking covenants with its lender, Bank of New Zealand. The bank agreed to a temporary waiver so long as NZ King Salmon raised at least $50m of new equity, after any transaction costs. The company sold $60m of shares at a discount, about $43m of which went to repay its debt.
Ryder said Rosewarne left the company well positioned for the future following the share sale and changes to its farming model.
The board would start an international search for Rosewarne’s replacement.
Sales general manager Graeme Tregidga has been appointed acting chief executive.
Rosewarne has made an agreement with the company over option shares issued to him under a long-term incentive plan, which enable him to require the company to buy 2,340,883 shares by February 28, 2024.
The company said the proceeds would be used to repay a loan owed by Rosewarne to NZ King Salmon in relation to the option shares.
Shares in NZ King Salmon were the biggest decliner on the NZX in late morning trading yesterday, down 4.3% to 22.5 cents each.
The stock has lost two-thirds of its value so far this year.
Chairperson John Ryder said Rosewarne left the company well positioned for the future.