July 4, 2024
US-based Superior Fresh to acquire AquaBounty's salmon farm for US$9.5 million
Superior Fresh, a Wisconsin, US-based producer of salmon, has agreed to purchase AquaBounty's land-based salmon farm in Albany, Indiana, US for US$9.5 million, Fishfarmingexpert reported.
The deal includes equipment and is subject to customary adjustments. AquaBounty, known for its AquAdvantage strain of Atlantic salmon that grows more quickly due to genetic modification, stated that portions of the sale proceeds will be used to reduce its secured term loan with JMB Capital Partners Lending, LLC. The sale is expected to be completed this month.
Superior Fresh, located in Northfield, east of Minnesota, US, employs an aquaponics system that uses nutrients from its land-based salmon farm as fertiliser for salad greens grown with their roots in water. This process cleanses the water, which is then returned to the fish tanks.
Unlike AquaBounty, Superior Fresh does not use genetic engineering and states on its website that its fish consume a non-GMO, organic diet. The company claims its fish have twice the omega-3 content of other salmon and are not fed formaldehyde, pesticides, antibiotics, or GMOs.
AquaBounty listed its 1,200-tonne-per-year Indiana facility for sale in February to raise cash. The company is building a 10,000-tonne RAS facility in Pioneer, Ohio, but paused construction last year due to rising costs, which had increased to nearly US$485 million - US$495 million.
AquaBounty said, "The Indiana land-based, recirculating aquaculture facility has been growing AquaBounty's GE Atlantic salmon since 2019 and has succeeded in its objective to demonstrate the company's ability to grow and sell its salmon in the market."
"With construction on its Ohio farm site roughly 30% completed, the company plans to prioritize the financing alternatives necessary to resume and complete its construction, while the proceeds from the sale of its Indiana farm are expected to provide needed liquidity to AquaBounty's balance sheet."
In April, AquaBounty secured a short-term US$10 million loan from JMB Capital Partners Lending to raise working capital and address existing debt, using both the Indiana farm and the Ohio RAS facility as collateral. The loan matures at the end of this month, or earlier upon the sale of certain collateral or an event of default.
- Fishfarmingexpert
