AquaBounty Technologies announced this week that the company has grossed approximately USD 65.2 million (EUR 53.6 million) from an underwritten public stock offering last week.
The offering of 10,028,000 shares of common stock at a price to the public of USD 6.50 (EUR 5.37) per share, including the underwriters’ full exercise of their option to purchase 1,308,000 shares at the public offering price less underwriting discounts and commissions, closed on 14 December.
The company intends to use the net proceeds of this offering for general corporate purposes, including for the purchase of land and the payment of costs associated with the construction or site development for the new production farm, investing further in sales, marketing, research and development efforts, and payment of anticipated general and administrative expenses.
The company announced the stock offering soon after a corporate update explaining that the location of its anticipated third fish farm is still up in the air. In late October, AquaBounty announced it had selected Mayfield, Kentucky, U.S.A., as the location of its new farm, but the company is now considering other options as well.
“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,” Wulf said. “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 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 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 also announced that Boston, Massachusetts, U.S.A.-based Innovasea will provide the recirculating aquaculture system (RAS) technology for the land-based salmon company’s third fish farm.
Photo courtesy of AquaBounty Technologies
