AquaBounty issues public offering to fund North American farms
In its latest effort to boost funding for new salmon farms it would like to build in North America, AquaBounty Technologies, Inc., issued an underwritten public offering that is expected to raise USD 12 million (EUR 9.9 million).
The public offering consists of an aggregate of 3,692,307 shares of common stock, together with warrants to purchase up to 3,692,307 shares of common stock of the genetically engineered salmon producer.
“The company currently intends to use the net proceeds of this offering to continue construction and renovation activities of its existing facilities in Rollo Bay [Prince Edward Island, Canada] and Indiana [United States], for working capital costs associated with growing its first batches of fish at our Indiana and Rollo Bay farm sites, and other general corporate purposes…” AquaBounty said in a statement.
The offering price is USD 3.25 (EUR 2.68) per share, and the offering is expected to close on or around 17 January.
In a November Security and Exchange Commission filing, AquaBounty said it was seeking to raise USD 20 million (EUR 16 million) by selling shares of its common stock.
Intrexon Corporation, its majority stockholder, is interested in purchasing a minimum of USD 7.5 million (EUR 6.2 million) worth of shares “at the public offering price, if the aggregate proceeds to us from this offering are USD 20 million,” AquaBounty said at the time.
In the November filing, AquaBounty acknowledged that it may never achieve profitability.
“We have incurred significant losses since our inception. We expect to continue to incur significant losses for the foreseeable future, and we may never achieve or maintain profitability,” the company said.