AquaBounty announced on Tuesday, 9 February the closure of its latest public stock offering netted the company approximately USD 127.1 million ( EUR 110 million) in new funding, before deducting underwriting discounts and commissions and offering expenses.
The company offered 14.96 million shares of common stock of the company at a price of USD 8.50 (EUR 7.00) per share, which includes the underwriters’ full exercise of their option to purchase 1,950,000 shares at the public offering price less underwriting discounts and commissions.
AquaBounty plans to use the funds for general corporate purposes, including the payment of costs associated with the construction or site development for a new production farm, investing further in its sales and marketing, research and development efforts, and payments of anticipated general and administrative.
The new farm would be the first large-scale commercial facility for the company’s AquAdvantage salmon – a proprietary genetically engineered Atlantic salmon – and is expected to have a 10,000-metric-ton production capacity. The farm was slated to be constructed in Mayfield, Kentucky, U.S.A., but the company later backtracked and announced that it was considering two other potential farm locations in the Midwest.
“Though we previously identified Mayfield, Kentucky, as our leading site for Farm 3, our subsequent confirmatory diligence has indicated that an alternate top site may be superior,” AquaBounty CEO Sylvia Wulf said at the time. “The Commonwealth of Kentucky has been a tremendous partner in this process, and one of our alternate sites is located there. Our rigorous selection process has allowed us to pursue two additional sites located in the Midwest to ensure we have the optimal location for our farm.”
The company is planning to begin construction in 2021, with commercial production expected to begin in 2023. It is unclear if that timeline will shift with a location change for the planned farm.
Aquabounty is also facing a boycott from U.S. foodservice provider Aramark, which recently announced that it will not buy genetically engineered products.
“Reiterating our previously stated opposition to genetically engineered (GE) salmon, we will not purchase it should it come to market," Aramark said in a recent update to its sustainable sourcing policy. "Avoiding potential impacts to wild salmon populations and indigenous communities, whose livelihoods are deeply connected to and often dependent upon this vital resource, is core to our company’s commitment to making a positive impact on people and the planet."
Shares of AquaBounty Technologies, which trades on the NASDAQ Stock Exchange under the symbol AQB, were trading at USD 9.82 (EUR 8.11) on Tuesday afternoon.
Photo courtesy of AquaBounty Technologies
