North American land-based salmon farmer known for its production of genetically modified salmon, AquaBounty Technologies is planning to sell its Indiana facility.
This move, announced by CEO Sylvia Wulf in a recent stock market statement, aims to generate funds and reinforce the company’s financial position.
Wulf acknowledged the difficulty of the decision, praising the Indiana team for their significant contributions over the past eight years. The Indiana farm will continue to harvest and sell its remaining GMO Atlantic salmon in preparation for the transfer to new ownership.
AquaBounty, the pioneer in commercial-scale GMO salmon farming, has faced challenges with its main project, a 10,000-ton recirculating aquaculture system (RAS) farm in Pioneer, Ohio, primarily due to escalating construction costs. Consequently, the company has been exploring various funding options to strengthen its balance sheet.
The sale of the smaller Albany, Indiana facility, which is currently 30% complete, is part of AquaBounty’s strategy to prioritize and support the Ohio project. Berenson & Co, an investment bank, will advise on the sale process.
Financially, AquaBounty’s third-quarter update in November revealed a 12% increase in revenue year-on-year to $733,000 but also a nearly 13% rise in losses to $6.1 million. This financial move aims to address these challenges and secure the future of the company’s ongoing projects.
