AquaBounty raises US$2.25 million for working capital
Former North America land-based salmon farmer AquaBounty Technologies has raised US$2.25 million with a private placement of shares.
The net proceeds will be used for working capital and general corporate purposes.
AquaBounty produced “Aquadvantage” Atlantic salmon with an inherited genetic modification that made them grow more quickly. It operated a 1,200-tonne capacity recirculating aquaculture system (RAS) facility in Albany, Indiana, and two hatcheries on Prince Edward Island (PEI), Atlantic Canada.
It had also embarked on construction of a 10,000-tonne RAS facility in Pioneer, Ohio, but halted work when costs rocketed.
No more money
The company then ceased production of salmon when it ran out of money, selling off the RAS facility in Albany, Indiana, to Superior Fresh for a bargain basement price of $9.3m to meet debts and raise money for the Ohio project.
It also sold some of the equipment that had been bought for the Ohio farm, and then off-loaded its Canadian hatcheries and another, semi-complete land-based facility on PEI to conventional salmon farmer Cooke Aquaculture for $5.2m as it scrabbled for cash. The deal included AquaBounty’s intellectual property rights for GM salmon, although Cooke has stressed that it has no intention of producing GM fish.
In its annual report published in March, AquaBounty said it had received a non-binding Letter of Interest purchase offer for its incomplete RAS facility in Pioneer, Ohio, and was considering the offer.
Preferred stock
The private placement announced yesterday was of Series B preferred stock that ranks senior to the company’s common stock and all other junior equity securities with respect to dividends and distributions upon liquidation, dissolution or winding up.
Dividends will accrue on each share of Series B Preferred Stock at the rate of 18.0% per annum on a quarterly basis in arrears, calculated on the liquidation value of $20.60 per share.
