AquaBounty Technologies announced this week that Innovasea, a global leader in advanced aquatic solutions for aquaculture, will provide the recirculating aquaculture systems (RAS) technology for the land-based salmon company’s third fish 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.
“We are pleased to announce Innovasea as our RAS provider for Farm 3, combining best-in-class technology with our experienced, passionate team,” AquaBounty CEO Sylvia Wulf said. “Innovasea is a leader in the industry, combining deep expertise in implementation with intelligent, connected RAS technology used in tier-one installations globally. Leveraging their RAS solutions and our AquAdvantage salmon, we believe we are building a next-generation, highly productive facility that will serve as a model for the industry.”
In late October, AquaBounty announced it had selected Mayfield, Kentucky, U.S.A., as the location of its new farm, but it appears that plan is no longer set in stone.
“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 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 this week an underwritten public offering of 8,720,000 shares of common stock at a price to the public of USD 6.50 (EUR 5.37) per share. AquaBounty expects to receive aggregate gross proceeds of approximately USD 56.7 million (EUR 46.8 million) from the offering.
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.
In addition, AquaBounty has granted the underwriters of the offering a 30-day option to purchase up to 1,308,000 additional shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about 14 December, 2020, subject to customary closing conditions.
The company’s stock, traded on the NASDAQ Stock Exchange under the symbol AQB, shot up from USD 4.16 (EUR 3.43) on 27 November to over USD 10.00 (EUR 8.25) on 7 December, but has since depreciated to USD 7.20 (EUR 5.94).
Photo courtesy of AquaBounty Technologies
