The Board of Directors of AquaBounty Technologies announced that the company will wind down its hatchery operations in Bay Fortune, including a reduction of its workforce and the exit of several senior management members.
“AquaBounty will immediately begin to wind down its Bay Fortune operation, its only remaining operating farm, including the culling of all remaining fish and a reduction of substantially all personnel over the course of the next several weeks,” stated David Frank, chief financial officer and interim chief executive officer. “We prioritized maintaining operations at the Bay Fortune facility, but do not have sufficient liquidity to continue to do so. We have been working for over a year to raise capital, including the sale of our farms and equipment. Unfortunately, these efforts have not generated enough cash to maintain our operating facilities. We therefore have no alternative but to close down our remaining farm operations and reduce our staff.”
“Dave Melbourne, our chief executive officer, has voluntarily resigned his position with the company. Additionally, Alejandro Rojas and Melissa Daley, our chief operating officer and chief people officer, respectively, have departed with the elimination of their positions,” said Frank.
“Over the course of the next few months, we will continue to work with our investment banker to assess alternatives for our Ohio farm project, and we will continue to market and sell available assets to generate cash. We will keep all stakeholders apprised of our progress,” concluded Frank.
AquaBounty developed AquAdvantage salmon, a faster-growing strain of Atlantic salmon featuring a genetic modification. The company has been recently struggling with consistent financial losses.
AquaBounty operated a RAS facility in Albany, Indiana, with a capacity of 1,400 tons, and began constructing a larger RAS facility in Pioneer, Ohio. However, the Pioneer project was paused as costs escalated.
In April, AquaBounty mortgaged half of the Pioneer farm for a USD 10 million loan to generate working capital and address existing debt. By July, the company sold the Albany facility for a discounted price of $9.5 million, and in September, AquaBounty announced the sale of its Rollo Bay farm in Prince Edward Island (PEI).
