December 17, 2024

 

AquaBounty to close hatchery in Bay Fortune, Canada amid financial challenges

 
 


The board of directors of AquaBounty Technologies has announced the closure of its hatchery operations in Bay Fortune, Prince Edward Island, Canada, signalling a significant reduction in workforce and the departure of senior management members.

 

David Frank, AquaBounty's chief financial officer and interim chief executive officer, confirmed that operations at the Bay Fortune facility will be wound down immediately. "AquaBounty will immediately begin to wind down its Bay Fortune operation, its only remaining operating farm, including the culling of all remaining fish and a reduction of substantially all personnel over the course of the next several weeks," Frank stated.

 

Frank explained that despite efforts to maintain operations at the facility, the company does not have sufficient liquidity to continue. "We prioritized maintaining operations at the Bay Fortune facility, but do not have sufficient liquidity to continue to do so. We have been working for over a year to raise capital, including the sale of our farms and equipment. Unfortunately, these efforts have not generated enough cash to maintain our operating facilities. We therefore have no alternative but to close our remaining farm operations and reduce our staff," he said.

 

Frank also announced key changes in AquaBounty's senior management team. "Dave Melbourne, our chief executive officer, has voluntarily resigned his position with the company. Additionally, Alejandro Rojas and Melissa Daley, our chief operating officer, and chief people officer, respectively, have departed with the elimination of their positions," he added.

 

Looking ahead, AquaBounty will focus on exploring strategic alternatives for its Ohio farm project and liquidating available assets to raise cash. "Over the course of the next few months, we will continue to work with our investment banker to assess alternatives for our Ohio farm project, and we will continue to market and sell available assets to generate cash. We will keep all stakeholders apprised of our progress," Frank concluded.

 

AquaBounty, known for developing AquAdvantage salmon—a genetically modified strain of Atlantic salmon that grows faster than traditional breeds—has faced persistent financial challenges.

 

Previously, the company operated a Recirculating Aquaculture System (RAS) facility in Albany, Indiana, with a capacity of 1,400 tons. Construction began on a larger facility in Pioneer, Ohio, but escalating costs forced AquaBounty to pause the project.

 

To address mounting financial issues, AquaBounty mortgaged half of the Pioneer farm in April for a US$10 million loan to generate working capital and pay down existing debt. By July, the company sold its Albany facility for a discounted price of US$9.5 million. In September, AquaBounty also announced the sale of its Rollo Bay farm in Prince Edward Island.

 

-      AquaFeed

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