AquaBounty has lost $369m in its 33-year existence

Debt-laden former salmon farmer AquaBounty Technologies has made losses of US $369 million since its incorporation in December 1991, it said in a gloomy update on its financial position in its report for the first quarter of 2025.

AquaBounty farmed fish that inherited a genetic modification enabling them to grow more quickly and had ambitions to build a network of 10,000-tonne-capacity land-based facilities in North America.

But it ran out of money as building costs for the first such facility in Pioneer, Ohio, spiralled. It paused work on the site, and then sold off a smaller farm in Albany, Indiana, for a bargain basement price of $9.3m to meet debts and raise money for the Ohio project.

Sold equipment

It also sold some of the equipment that had been bought for the Ohio farm, and earlier this year sold its Canadian assets - two hatcheries and another, semi-complete land-based facility, all on Prince Edward Island – to conventional salmon farmer Cooke Aquaculture for $5.2m as it scrabbled for cash. The deal also included AquaBounty’s intellectual property rights for GM salmon, although Cooke has stressed that it has no intention of producing GM fish.

As of March 31, AquaBounty had had $1.4 million in cash and cash equivalents.

The company still owns the Pioneer site.

Strategic alternatives

“As stated in our previous announcement, AquaBounty plans to continue to work with our investment banker to assess strategic alternatives for our partially constructed farm in Pioneer, Ohio and to market and sell available Ohio equipment assets to generate cash,” said David Frank, chief financial officer and interim chief executive.

“On February 11, 2025, we completed the sale of certain Ohio equipment assets that had been purchased for our Ohio farm project for net proceeds of $2.3m, after deducting commissions and fees. On March 3, 2025, we completed the sale of our Canadian farms, including the company's corporate IP, for net proceeds of $1.9m, after deducting commissions, fees and the assumption of $3.2m in outstanding loans. These transactions have provided us with the liquidity to continue to pursue strategic alternatives for our Ohio Farm Project.”

Substantial doubt about future

AquaBounty points out in a submission to the US Securities and Exchange Commission that its ability to continue as a going concern is dependent upon raising additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, on acceptable terms, or at all.

“This raises substantial doubt about our ability to continue as a going concern within one year after the date hereof,” wrote the company.

AquaBounty subsidiary AquaBounty Farms Ohio, LLC (AFO) is being sued by a contractor, Gilbane Building Company, for its alleged failure to pay outstanding amounts owed to the builder.

Gilbane filed a “mechanic’s lien” on the Ohio farm site on September 11, 2024, in the amount of $1.5m. Gilbane alleges various causes of action, including breach of contract, and is seeking monetary damages and foreclosure of the mechanic’s lien.

AquaBounty said it and AFO are currently assessing next steps.