Image: AquaBounty / FIS

AquaBounty Technologies Announces Third Quarter 2023 Financial Results

AquaBounty Technologies, Inc. (NASDAQ: AQB) ("AquaBounty" or the "Company"), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, today announced the Company's financial results for the third quarter and nine months ended September 30, 2023.

Source: Nasdaq

Third Quarter 2023 Highlights and Recent Developments

• Generated $733 thousand in product revenue in the third quarter, a year-over-year increase of 12% as compared to $653 thousand in the third quarter of 2022;
  
• Net loss in the third quarter of 2023 was $6.1 million, as compared to $5.4 million in the third quarter of 2022;
  
• Cash and cash equivalents and restricted cash totaled $17.8 million as of September 30, 2023, as compared to $102.6 million as of December 31, 2022; and
  
• Entered into a Memorandum of Understanding with Noble Salmon to develop a salmon farm in the country of Georgia.

Management Commentary

"Our third quarter results were impacted by a decline in market prices for Atlantic salmon that began during the second quarter, even though our Indiana farm exceeded its planned output," said Sylvia Wulf, Board Chair and Chief Executive Officer of AquaBounty. "However, we continue to be encouraged by the demand for our fish.

"We announced in August that the Company was evaluating both the cost estimate and our options for moving forward with the completion of construction of our Ohio farm. We selected Gilbane Building Company ("Gilbane") as our new construction firm for the project and they have been working for the past several months with the subcontractors on the project to estimate the remaining cost to finish construction of the facility. That work has been completed and the new estimate for the total project cost is now in the range of $485 - $495 million, of which approximately $140 million has been spent to date. We recognize this is substantially higher than previous ranges, but the updated estimates incorporate the highly inflationary environment for labor and materials, particularly concrete and piping, that have impacted construction projects over the last three years. Consistent with our commitment to environmental stewardship, the estimate includes a water/wastewater treatment facility to return water used in the farm to the local environment in an "as clean" condition as when it was withdrawn, and in a manner that meets or exceeds applicable local and federal EPA standards, before it returns to the river. We are negotiating elements of the estimated costs with Gilbane, and once complete, will finalize the Guaranteed Maximum Price that would provide a contractual cap on the total expenditure to complete the farm.

Source: Stockfile FIS

"We are continuing our collaboration with Wells Fargo Corporate and Investment Banking on our plans to place a mix of taxable and tax-exempt bonds through the Toledo-Lucas County Port Authority in an amount up to $425 million, and we are exploring a wide range of alternatives with Oppenheimer & Co. to complete the additional capital requirements to allow construction to resume on the Ohio farm. Though there are significant steps and risks remaining to complete this process, we are excited to be working with our team of collaborators.

 

 

 

 

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"Finally, we continue to make progress on leveraging and expanding our operational expertise internationally. AquaBounty has entered into a non-binding memorandum of understanding with Noble Salmon, a company formed to build and operate a Recirculating Aquaculture System ("RAS") salmon farm in the Republic of Georgia. Noble Salmon was formed by the Benish Group, whose CEO Meni Benish is also a co-founder of Archi, a major engineering and real estate development firm in the Republic of Georgia. Benish is also the Chairman of the Israel-Georgia Chamber of Commerce. Benish Group will contribute expertise in engineering, material sourcing and permitting to the project, while AquaBounty will provide its experience successfully operating RAS farms through rigorous operating procedures and incorporating the latest technologies into the design of those farms. The combination of capabilities of the two companies benefits the construction and operation of a planned state-of-the-art RAS farm focused on producing Atlantic salmon for sale in nearby markets. This project will be the first instance of AquaBounty executing its strategy to enter additional salmon markets through local partnerships in a capital-lite structure.

"As always, I look forward to providing my fellow shareholders with an update in the near future", concluded Wulf.

Source: AquaBounty 

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