AquaBounty Technologies released its third-quarter financial results, along with a corporate update, this week – indicating a minor loss in its third-quarter earnings as the company moves toward the first harvest of its genetically engineered AquAdvantage salmon and continued scaling of its operations.
The company recorded a net loss in the third quarter of USD 3.6 million (EUR 3 million), compared to USD 3 million (EUR 2.5 million) in the same period of the prior year. Operating expenses in the third quarter were USD 3.7 million (EUR 3.1 million), compared to USD 3 million (EUR 2.5 million) in the same period of the prior year, a result of increased production operations and legal fees. As the company wrapped up ongoing improvements to its Albany, Indiana, farm, cash used for capital projects in the third quarter hit USD 1.1 million (EUR 938,000), compared to USD 900,000 (EUR 767,000) the previous year.
“The third quarter of 2020 was marked by our continued progress towards the first-ever commercial scale harvest of AquAdvantage salmon,” AquaBounty CEO Sylvia Wulf said in a statement. “Today, I am pleased to announce that AquAdvantage salmon are meeting our growth and feed conversion ratio expectations – a key component of their economic profile – and we have made tremendous strides towards building out an enhanced logistics network to expand our distribution capabilities nationwide.”
Wulf credited the company’s first commercial-scale harvesting of conventional Atlantic salmon with “refining the processes, operating procedures, and partner relationships required for the first harvest of [AquAdvantage salmon].”
While operating costs are on the rise, the company has been making significant moves toward profitability this year and has raised gross proceeds of USD 31.6 million (EUR 26.9 million) through an underwritten public offering of 12.65 million shares of common stock at a price of USD 2.50 (EUR 2.13) per share.
Just last week, the company announced that Mayfield, Kentucky, U.S.A., has been selected as its favored site for a future 10,000 metric ton (MT) land-based salmon farm. The company is planning to begin construction in 2021, with commercial production expected to begin in 2023.
“Given our strong balance sheet, the impending first-ever commercial harvest of AAS and the planned construction of our next farm, AquaBounty is in a better position than ever to drive long-term value for our shareholders and become a major domestic supplier of fresh, sustainable salmon,” Wulf said.
Photo courtesy of AquaBounty Technologies
