AquaBounty is offering USD 10 million (EUR 9 million) in shares of its common stock to continue construction and renovation at its Canadian and United States farm sites, among other initiatives.
The salmon producer expects proceeds from the stock offering to be between USD 9.2 million (EUR 8.3 million) and USD 10.6 million (EUR 9.5 million), based upon an assumed public offering price of USD 2.66 (EUR 2.39) per share.
“We currently intend to use the net proceeds of this offering to continue construction and renovation activities of our existing facilities in Rollo Bay and Indiana, for working capital costs associated with growing our first batches of fish at our Indiana and Rollo Bay farm sites; and other general corporate purposes - including investing further in our sales and marketing and research and development efforts and payment of anticipated general and administrative expenses,” AquaBounty said in a U.S. Securities and Exchange Commission filing.
In the filing, the genetically modified salmon producer acknowledged that it has incurred “significant losses since our inception in 1991 and expect to continue to incur significant losses until we achieve market acceptance for our product and expand our production capacity.”
For the fiscal years ending 31 December 2018 and 2017, AquaBounty realized operating losses of USD 10.4 million (EUR 9.3 million) and USD 9.3 million (EUR 8.3 million), respectively.
“We have sold small quantities of AquAdvantage Salmon from our demonstration farm site in Panama during 2018 and 2019, and we expect more significant revenues in 2020 once we begin to harvest from our farms in Indiana and on Prince Edward Island,” AquaBounty said.
Photo courtesy of AquaBounty
