Despite attempts to raise capital by selling farms and equipment, GE salmon producer AquaBounty will cease fish farming.
December 19, 2024
By Kristin Bakker
The board of directors of AquaBounty Technologies Inc., a biotechnology company focused on improving productivity in the commercial land-based aquaculture industry, announced that the company will wind down its hatchery operations in Bay Fortune in Prince Edward Island, including a reduction of its workforce and the exit of several senior management members.
“AquaBounty will immediately begin to wind down its Bay Fortune operation, its only remaining operating farm, including the culling of all remaining fish and a reduction of substantially all personnel over the course of the next several weeks,” stated David Frank, chief financial officer and interim chief executive officer. “We prioritized maintaining operations at the Bay Fortune facility but do not have sufficient liquidity to continue to do so. We have been working for over a year to raise capital, including the sale of our farms and equipment. Unfortunately, these efforts have not generated enough cash to maintain our operating facilities. We, therefore, have no alternative but to close down our remaining farm operations and reduce our staff.
“Dave Melbourne, our chief executive officer, has voluntarily resigned his position with the company, effective Dec. 6, 2024. Additionally, Alejandro Rojas and Melissa Daley, our chief operating officer and chief people officer, respectively, have departed with the elimination of their positions,” Frank added.
Frank said the company will work with its investment bank in the next few months to assess alternatives for its farm project in Pioneer, Ohio, and “will continue to market and sell available assets to generate cash. We will keep all stakeholders apprised of our progress.”
When AquaBounty reported financial results last month for the third quarter ended Sept. 30, 2024, it had a net loss of $3.4 million, down significantly compared to $6.1 million in the third quarter of 2023, primarily due to the sale of the company’s Indiana farm earlier in the year.
The Albany, Ind., land-based, recirculating aquaculture facility had been growing AquaBounty’s genetically engineered (GE) Atlantic salmon since 2019. The sale of its Indiana farm, which included certain equipment from the Ohio farm, was completed on July 26 for $9.2 million, net of expenses, and a portion of the net proceeds was used to pay off the bridge loan for the transaction.
AquaBounty had also recently decided to sell its Rollo Bay farm operation in Prince Edward Island. In a Sept. 3, 2024, announcement, the company said it had been “exploring a wide range of funding and strategic alternatives to strengthen its balance sheet and increase its cash position,” which resulted in the decision to sell the Rollo Bay operation. AquaBounty purchased the farm in 2016 and further developed into a broodstock and egg production operation. The sale is expected to be completed before year-end.
In November 2015, after almost 20 years in regulatory limbo, the U.S. Food & Drug Administration announced its approval of AquAdvantage Salmon as the first GE animal intended for food. AquaBounty said AquAdvantage is an Atlantic salmon that reaches market size more quickly than non-GE, farm-raised Atlantic salmon. After a thorough analysis FDA determined that the fish is safe to eat.
AquaBounty leverages its technology advances in fish breeding, genetics, health and nutrition to deliver innovative solutions that address food insecurity and climate change issues. Its objective is the application of biotechnology to ensure the availability of high-quality seafood to meet global consumer demand.
With headquarters in Maynard, Mass., the company locates its land-based recirculating aquaculture system farms close to key consumption markets with the goal of preventing disease and including multiple levels of fish containment to protect wild fish populations.
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