View of salmon grow-out tanks at an AquaBounty farm.
Photo: Samuel Thomas Kendall / AquaBounty.
AquaBounty Technologies, Inc. has announced that it will shut down its hatchery operations in Bay Fortune due to a lack of financial liquidity. This includes a reduction in the workforce and the exit of several senior management members.
Regarding this decision, CFO and Interim CEO David Frank detailed: "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."
Moreover, he has assured that they have tried to raise funds throughout this year to avoid this scenario, including farm and equipment sales. The closedown is the only alternative, according to the land-based aquaculture salmon producer.
This is in addition to the resignations of CEO Dave Melbourne, and Alejandro Rojas and Melissa Daley, Chief Operating Officer and Chief People Officer, respectively.
"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.
In mid-May, AquaBounty reported that its Q1 2024 losses increased by 72%. The loss included a non-cash impairment charge against the long-lived assets of its Indiana farm.
In February, it also announced it was putting its Indiana salmon farm for sale; shortly after, on April 2, we learned the company had closed the 2023 exercise with a drastic drop in cash reserves.
Furthermore, WeAreAquaculture informed that after exploring "a wide range of financing and strategic alternatives" to strengthen its balance sheet and increase its cash position, AquaBounty decided to put its Rollo Bay farm operation up for sale.
