February 16, 2024
AquaBounty plans sale of Indiana, US salmon farm to fund Ohio project
AquaBounty Technologies intends to sell its land-based recirculating aquaculture system (RAS) salmon farm in Indiana, US, as part of a strategy to raise funds for its Ohio-based project, SeafoodSource reported.
Simultaneously, AquaBounty has been seeking financing for its Pioneer, Ohio, RAS farm, which encountered construction delays due to cost escalations, reaching US$395 million from an initial estimate of around US$200 million.
CEO Sylvia Wulf stated that the sale of the Indiana farm is the initial step in strengthening the company's balance sheet and increasing its cash reserves. Despite the difficulty of the decision, Wulf expressed gratitude to the Indiana team for their contributions over the past eight years.
AquaBounty acquired the Albany-based farm in 2017 and transformed it to produce 1,200 metric tonnes of salmon annually.
With construction progress on the Ohio farm at about 30%, AquaBounty aims to secure financing to resume and complete the project, utilizing proceeds from the Indiana farm sale to bolster liquidity.
To facilitate the sale process and explore additional financing options, AquaBounty enlisted the services of investment bank Berenson & Company.
Shares of AquaBounty, listed on the Nasdaq Stock Exchange, experienced a 2% increase following the announcement, though they remain below their 52-week high. AquaBounty executed a 1-for-20 reverse stock split in October 2023 to avoid delisting.
Apart from its Ohio and Indiana projects, AquaBounty operates a broodstock and egg production farm in Prince Edward Island, Canada. In its Q3 2023 results, the company generated US$733,000 in revenue but recorded a net loss of US$6.1 million.
- SeafoodSource
