Good morning, ladies and gentlemen. We are very pleased to invite you for this investor call on a pretty short notice. The agenda for this morning is that I will do the presentation and then together with Ronny Meinkøhn, the CFO, we will together do the Q&A following this presentation. During the presentation, you are invited to post any questions. This morning, you have seen several announcements and news from AKVA. I will try to summarize it here in the highlights. First of all, we are talking about the private placement corresponding to 10% of the outstanding shares in AKVA at a subscription price of NOK 96.50 per share. The background on the basis here is that we have been running a very solid process together with Israel Corp, the new strategic investor, in the last few months, also together with a preparatory due diligence.
That altogether led to this share emission and a complete transactional partnership at the share issue of NOK 96.50. Secondly, we are talking about a share sale from existing shareholders at a purchase price of the same NOK 96.50 per share. Israel Corp will purchase approx 6% of existing AKVA shares, and then in combination, the private placement plus the purchase of the shares will lead to Israel Corp taking a 15% ownership in AKVA, at least 15% ownership. The third element is about establishment of an investment platform for investments in land-based projects worldwide. Here the context is that AKVA and Israel Corp together expect to contribute with $ 10 million each, with the goal and the aim to reach up to $100 million for this investment platform together with co-investors.
The fourth element is the announcement of a signed RAS contract with AquaCon , which is still subject to full financing. The value for this contract for AKVA is about $150 million. Consequently, we are also calling for an extraordinary general meeting on October 20th, 2021. Those are the highlights. That's the summary. The basis for this transaction, I will take you through a few slides. That's about the market outlook and the strategic agenda for AKVA Group. First, the global high-level picture, the underlying demand with growth, which implies 1 million-2 million tons of volume increase by the year 2030. If you look bottom left here, that's the back mirror. That's what happened with regards to volume growth, the global salmon supply in the last 10 years.
That came up with 1.1 million tons, which is representing a CAGR of 6% year-on-year. Looking forward, there is a kind of consensus in the industry that the industry has the capacity based on current technology platform, which is basically cage-based, Norway and Chile and the other regions, the traditional farming, which will probably allow the industry to have a supply growth of 3% year-on-year. However, if you take the global demand into equation, it's likely that that can grow on a higher pace, faster pace than the supply side. There the estimation is that a price neutral growth could be as high as 5% annually. The gray area is then representing the supply gap.
I call it the wind of opportunity. That's going to be 800,000, 900,000 tons of salmon over those years or into 2030, I should say, which needs to come from new production platforms, which could be offshore, but probably the majority needs to come from land-based closer to the consumer. This demand we expect to happen on the global mega trends, which has to do with salmon as a favorite species. Salmon carrying positive environment and health attributes, the EPA, DHA or Omega-3 is well known within salmon. Also distribution and access to new markets, new product development, the sushi, sashimi trend, et cetera. All this is leading to the expected growth.
If we summarize what I just explained on the previous page, you have the demand side here on upper left, also into regions with the 5% year-on-year CAGR. I also explained about the conventional production with a 3% CAGR. That is the capacity likely on the global growth on the traditional production platform. Once again, that's cage-based farming as we know it today. Thirdly, the wind of opportunity, the supply gap, the potential of ballpark 800,000 tons, which we believe a big part of the solution and answer to that needs to come from land-based. There are some more details on the slide, but I like to stay a bit high level.
If you look upper right, we believe that the implications for AKVA Group is that this is calling for still very strong cage farming segment with quite some growth, and we expect to see exponential growth in the land-based revenue for RAS-like technology. Once again, land-based farming to be part of the solutions into 2030 to fill the consumer gap. However, what we have been seeing recently, there is a massive headwind in land-based full grow-out segment. Here we just illustrate that by putting the share price development for the seven listed land-based companies. As you can see year to date, six of the seven have seen a massive decline in valuation year to date. Once again, we believe the land-based farming has a great potential. This is our pipeline.
To the very right, we could have illustrated not the NOK 500 million contract with this project in China. That is going well. That is being executed in accordance to plan. We have AquaCon, which is now announced this morning to be a final contract. Ecofisk and Svensk Lax, where we are in process of finalizing RAS contracts. If I should then summarize the challenge for this segment, the full grow-out salmon segment, the land-based segment, we see it this way, that the main challenge is access to equity financing. The land-based business has been too dependent on Norwegian capital. There are just a lot of projects, and many of those key projects will be overseas projects closer to the consumer in North America and Asia. We believe it's crucial and key to have access to international equity financing to realize those projects.
This is also the background and the basis why we have entered into the strategic partnership with Israel Corp. One element in the announcement is the establishment of the investment platform, which is between AKVA and Israel Corp. We have agreed to establish one investment platform. The legal structure is not decided yet. The investment in the land-based projects worldwide is based on using AKVA technology and solutions, but also bearing in mind ESG considerations. Both parties will contribute with $10 million each, and thus this can be in a pre-established project as well. The goal is to raise further commitments from co-investors and partners up to $100 million. This investment platform will target projects which are what we call closer to the consumer, for instance, in North America, Middle East, and Asia.
A few key words about the announcement this morning with regards to AquaCon and the RAS contract there. The location is in Maryland in the U.S. The parent entity is AquaCon AS in Norway, the first phase capacity is planned to be 16,000 tons. The total master plan for this project is approximately 50,000 tons, they have secured the land for three sites, three equal sites, 3 x 16,000 tons approx. The status for us is that basic engineering and design work is very much completed, the delivery contract is now signed but still subject to final financing. There, the context is that Israel Corp, together with AKVA, will participate in the financing with a $5 million convertible loan and the option to invest additional $15 million, both under certain conditions.
Also there, we can give the context that Israel Corp will actively back AquaCon in the fundraising using their own investor network. To summarize what this could mean for AKVA going forward, there are basically three elements here. With regards to land-based activity and the turnover ramping up from where we are today at approx NOK 500 million, and the first milestone to double to NOK 1 billion annual turnover. Three building blocks. One is about tapping into the fast-growing post-smolt segment in Norway, which is working very well, fast-growing. All projects, customers are very well financed as well. Secondly, it's about the Nordic Aqua Partners. Here you see the evolution and the illustration for the turnover the first couple of years. Then we also bank on our phase II, which we expect to kick in in a couple of years.
The third element on top is the turnover from a new ongoing contract now illustrated this morning with AquaCon. What I'd like to say about this, with the new investment platform I explained on the previous page, of course, still under construction as a disclaimer. With this in our toolbox, we are confident that we will make the step up as illustrated here. That leads me very much to the guidance. We posted this in November last year during our Capital Market Day. Basically, we are talking about organic top line growth, operational excellence programs in place. We are talking about stepping up our spending and increase in innovation, both with regards to product development and organic growth. Focusing on the three digital platforms, AKVA connect, AKVA observe, and AKVA fishtalk.
The guidance is that the combination of those levels will give and deliver a minimum 25% EBIT increase year-over-year, and gradually a step up to improve our OS to a minimum of 15% by 2023. Yeah. If you have been following AKVA Group, you can see that we have been facing some type of headwinds, in particular in the first half of this year, due to the cyber attack and also COVID situation. I would say that 2020 is expected to be a year in between. However, we expect this step up, as illustrated here, to really take part and accelerate as of 2022. We talk about the share issue. We consider this an attractive share issue to accelerate our strategic agenda.
Basically what it means for AKVA is that we will get access to NOK 300 million , about NOK 300 million as part of this share issue, and that's to the benefit of our strategic agenda. Just to rehearse very quickly what we mean with our strategic agenda. We have the strategy, the four pillars in our land-based strategy, which is building on our Zero Water Concept RAS technology. We are leading there when it comes to water scarce technology, which is important in overseas market. Secondly, box two is about completing the complete value proposition and offering it takes to run a successful land-based activity, and that's about feeding, fish tanks, fish handling, camera, lights, sensors, and control systems. We have an R&D agenda to support that development. Thirdly, it's about more the digital agenda to support what we call precision farming.
Finally, we also need to care about what is going to happen within production. The biological production and fish health is key there. We have already established a very strong team with strong knowhow, three PhD, to support our customers in succeeding. This is the land-based part. With regards to digital, we believe that the digitalization in aquaculture is basically about three generic trends. It's about remote operations. In the future, you will do feeding, you will have automated feeding and operation from maybe a big central per region or even in a country level. Less people will be on the site. Precision Fish Farming is about having as precise feeding as possible to avoid waste of feed and have as good feed conversion rate and growth factor as possible.
Thirdly, it's about bringing different systems together in a global ecosystem in order to have more power from big data. With regards to those three generic trends, we believe that AKVA is well equipped to be a leading player here. We have currently AKVA observe technology, that's our automated feeding solution. We have AKVA fishtalk. 60% of the global salmon will be on our production system, AKVA fishtalk. We have also AKVA connect bringing hardware and software together. On the sea-based side, the so-called cage farming, we have four building blocks there as well, which is about marine infrastructure, precision feeding, digital, and fish health and lice solutions. Underneath there in the blue color, the blue font, you can see different concrete products which we already have today in the marketplace.
We believe those are the four fundamental dimensions you need to cover in order to be successful with your sea-based operation. We are fairly advanced today, but we also realize that in order to be successful, we really need to speed up and accelerate innovation even more. Those three elements, land-based, sea-based, and digital, together with the internal focus, we call it our AKVA way operational excellence program, which is about getting it right first time. It's about building a strong global ERP platform and also strengthening capabilities within project and business controlling. All those together, we believe we can stimulate even more and accelerate. That's about the base. That's why we are doing this share issue. Israel Corp will be and become an important strategic partner for AKVA. The investment platform will be the driving force for realizing of new land-based projects as well.
We consider the whole transaction to be at a pretty attractive subscription price of NOK 96.50 per share, which is at a premium from trading the last weeks. With regards to Israel Corp, that is a reputable public investment company that owns and invests in high-quality companies with established management and go-to-markets. Israel Corp new investments focuses mainly on food tech, agri and agri tech, healthcare, and Industry 4.0. Israel Corp tries to generate return on its investment through active board participation and its operational and managerial expertise. I comment that in a minute. I have to say that we have been working pretty intensively in the last few months with the management of Israel Corp, and I have to say that has been truly inspirational. Final slide just to conclude on the partnership with Israel Corp.
Israel Corp and AKVA will form a strategic partnership with the purpose to share and utilize experience related to technology, digital, and food industry. As part of the arrangement and the partnership, Israel Corp will be entitled to appoint one board member in AKVA, while it holds a strategic ownership position of minimum 12%. We are going to work together and the chosen model is that Israel Corp will be part of an advisory committee to provide advice to CEO and the management of AKVA in matters of strategy, technology, and innovation, where they are carrying a lot of capabilities. AKVA and Israel Corp to be general partner for the investment platform, which is still under construction. The goal is to invest in land-based projects, either by direct investment or through the investment platform.
Last but not least, Egersund Group will still hold the majority ownership in AKVA. As a closing remark before we go to the Q&A, I consider this transaction with the partnership with Israel Corp, together with the new agreement with AKVA Group, to be truly great news for AKVA this morning. Very happy to share that with you, and thanks for listening in. We like to move to the Q&A session. I will ask Ronny to join me and our moderator to read any questions. Well, we don't have any questions yet, but still time to post questions. If you like to post any questions, we kindly urge you to do it shortly. Okay. If it was crystal clear, that's absolutely appreciated by us.
Perhaps we can give it 15 seconds more.
Yeah. All right. Thanks for joining on a pretty short notice, and I appreciate that you listened in. Thank you very much. Have a nice day.
Thank you.