The company recorded a net loss of more than $6 million for the quarter.
US land-based salmon farmer AquaBounty has inked a non-binding memorandum of understanding with Noble Salmon to develop and operate a Recirculating Aquaculture System (RAS) salmon farm in the Republic of Georgia, the company revealed as part of its Q3 presentation on Tuesday.
Noble Salmon is led by Meni Benish, CEO of the Benish Group and co-founder of Archi, a major real estate development firm in Georgia.
AquaBounty reported product revenues of $733,000 for Q3 2023, a slight increase from $653,000 in the same period last year. However, the company’s total costs and expenses increased to $6.1 million from $6.2 million in Q3 2022, resulting in an operating loss of $6 million. The net loss for the quarter was $6.1 million compared to a net loss of $5.5 million in Q3 2022.
As of September 30, AquaBounty reported $16.8 million in cash and cash equivalents, representing a significant decrease compared to $101 million at the close of 2022.
The company is currently in the process of evaluating the cost estimate for the finalization of construction at its Ohio farm. The revised projection for the total project cost falls within the range of $485 million to $495 million.
This considerable increase is primarily attributed to the inflationary environment, which has led to elevated labor and material expenses, notably concrete and piping.
AquaBounty has also faced headwinds in the form of declining market prices for Atlantic salmon during the third quarter, which had repercussions on its financial results.