AquaBounty's losses jumped to $50.5m in Q2
Deficit increased due to $44.5m write-down of assets sold by GM salmon farmer to raise cash
Land-based salmon farmer AquaBounty made a net loss of US $50.5 million in the second quarter of 2024, significantly worse than the $6.5m loss in the same period last year, it said in a press release today.
The increased loss was due to a non-cash impairment charge (write-down) of $44.5m against the long-lived assets of its Indiana farm and certain non-core equipment from its 30%-complete Ohio farm, which have been sold or made available for sale.
Cash, cash equivalents and restricted cash totalled $0.7m as of June 30, 2024, down from $9.2m as of December 31, 2023.
In April, AquaBounty executed a bridge loan agreement for $10m, secured by the assets of its Indiana and Ohio farms. The company borrowed $6.5m from the facility, which was repaid on July 26, 2024.
$9.2m asset sell-off
The sale of the Indiana farm, which included certain equipment from the half-built Ohio farm, was completed on July 26, 2024 for $9.2 million, net of expenses.
“Our focus during the second quarter was securing a buyer for the Indiana farm and continuing to explore a variety of financing initiatives to maintain liquidity,” said Dave Melbourne, AquaBounty’s president and chief executive. “With the sale of the Indiana farm now complete, we will continue to work with our investment banking partner to extend our cash runway, including the sale of additional equipment assets from our Ohio farm.
“While our net loss in the second quarter was up significantly, driven in large part by the non-cash impairment charge taken against our farm assets, the team continues to identify opportunities to preserve cash and reduce operating expenses. We completed a sale of conventional Atlantic salmon eggs from our Prince Edward Island (PEI) operations’ winter spawn to a large net-pen salmon farmer at the beginning of the quarter. In addition, we have secured a large follow-up order from the same customer for additional conventional eggs from our summer spawn.
Progress on R&D
“Our research and development team made further progress in PEI on our breeding, fish health and nutrition, and gene editing initiatives. This work supports important advances that will be valuable for the future of our business, supporting both traditional net-pen and land-based farming operations.
“When I assumed the role as AquaBounty’s CEO in June, I made it clear that I would be fully committed to working with our dedicated team to secure the future pathway forward for our company and stockholders. I remain resolute to this commitment. Our leadership team, and broader organisation, is working tirelessly to stabilise the business in the short term and drive value creation in the long-term. I look forward to sharing continued updates in the future.”
Until earlier this year, AquaBounty produced AquAdvantage salmon in the Indiana recirculating aquaculture system (RAS) facility. The fish inherit a genetic modification that enables them to reach harvest weight more quickly.
Following the discontinuation of production in Indiana, AquaBounty currently relies solely on the sale of conventional Atlantic salmon eggs and fry from PEI for revenue.
Construction of its RAS at Pioneer, Ohio, was paused last year after costs soared. It is seeking new funding sources, including potential strategic transactions, so it can complete the facility.
