RegEnergy

Posted by Selected Group - 12. May 2023

As the fund manager, we, together with the fund and its administrator, are continuously focused on the best possible return at the lowest possible risk to our investors. It has therefore been decided for the first planned project in the fund - the project in Frövi - to change the design of the production in "phase 2", i.e. the shrimp production, to a production of vegetables instead. It is currently being investigated whether it makes best business sense to roll out tomato production to the whole plant, whereby appropriate economies of scale could be realized, or whether a production of other vegetables would make better sense instead. We will update more on this once final agreements have been reached.

The decision is based, among other things, on the foundation's continuous assessment of the expected environmental footprint, where it became clear that a shrimp production at the specific location would not be able to maintain the strict environmental requirements the foundation sets itself as "best in class". The intention is now to move the development of shrimp production to a future project in the fund's pipeline, with a more suitable location.

The fund's return expectations remain unchanged at over 15% IRR after tax and costs.