LocalCoho, a land-based coho salmon farm in the U.S. state of New York, fell short of its fundraising goals of USD 3.15 million (EUR 2.65 million) with its recent Regulation D offering on the Harvest Returns platform.
The company was seeking new investors to expand its recirculating aquaculture system (RAS) operation, describing the fundraising goal as a tipping point that would lead to a significant scaling of its operations.
Harvest Returns is a financial technology marketplace for agricultural producers and investors which has raised over USD 11 million (EUR 9.3 million) for farms and agribusinesses across the world, according to the company.
LocalCoho’s listing, which closed last week, netted the company USD 620,000 (EUR 522,832) from more than a dozen individual investors – hitting just about 20 percent of its fundraising goal.
Working in a 43,000-square-foot RAS facility in Auburn, New York, the company hatches coho from certified-organic eggs and raises them to maturity. The sushi-grade fish are bound for a premium market, setting the product apart from more common, recognizable species, the company said.
LocalCoho has not released any details about how it hopes to expand, but Gibson previously told SeafoodSource that expansion across the country in as many as 12 regional locations is a possibility. The Auburn facility will serve as proof of concept for new facilities.
"By coming into the company now, Harvest Returns investors are aligning their terms with our committed and experienced group of investors at an early enough stage to experience the significant growth the company expects," LocalCoho CEO Phil Gibson said when the offering was announced. "Ultimately, we will operate a number of facilities near major U.S. markets to bring local consumers fresh, never frozen, sustainable fish raised in the U.S.
The fundraising goal was meant to build on more than USD 6.2 million (EUR 5.2 million) in financing that LocalCoho has already raised from its board of directors and outside investors.
The company has announced no additional plans for fundraising yet.
