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AquaBounty Technologies, Inc. has evaluated its Ohio farm project scope, relevant economic trends, and market costs. Thereby, the current design of the farm will require more than $320 million to construct.
“We are pleased with construction progress to date. We achieved another critical milestone during the quarter with the receipt of a new Withdrawal and Consumptive Use Permit from the Ohio Department of Natural Resources. Our cost estimates for the farm’s construction were increasing above our target. Due to the historic inflation that is gripping the economy,” said Sylvia Wulf, Chief Executive Officer of AquaBounty.
“With the progress made on the farm design and updated cost estimates, we are again moving forward with the planned bond financing. We have resumed our efforts with Wells Fargo Corporate and Investment Banking. To mitigate the increase in the construction cost estimate and the impact of rising interest rates, we have received approval from the Board of the Toledo-Lucas County Port Authority to increase the amount of the bond offering up to $425 million. We are now moving forward with an updated timeline reflecting the larger bond offering, with the expectation of closing the bond financing in the first quarter of 2023,” she added.
Third quarter financial results
The company generated $653 thousand in product revenue in the third quarter. A year-over-year increase of 44% as compared to $455 thousand in the third quarter of 2021. In the nine months that ended September 30, 2022, product revenue totaled $2.7 million. A year-over-year increase of 255% as compared to $0.8 million in 2021.
On the other hand, the net loss in the third quarter totaled $5.4 million, as compared to $6.9 million in the third quarter of 2021. In the nine months that ended September 30, 2022, the net loss totaled $16.1 million, as compared to $16.3 million in 2021.
Regarding this, Wulf stated: “AquaBounty continued to see strong demand for our salmon from seafood distributor customers. We once again sold everything we could produce. This is combined with improvements in our yields, drove a 44% year-over-year increase in third-quarter revenues to $653 thousand.
Additionally, “our production operations are seeing the benefit of the salmon biology expertise that comes from the scientists and technicians throughout our organization. Their understanding of the interaction between salmon biology and the RAS environment in which our fish grow has enabled us to begin to increase our production efficiency. Also, reduce mortality risk at our Indiana farm, which is realized through increased harvest yields.”
Finally, the CEO noted: “Looking ahead into 2023, we believe the need for land-based salmon that is farmed efficiently, sustainably, and profitably will continue to rise. As consumers opt for cleaner proteins that take the pressure off fully fished or overfished fisheries. With ongoing market validation, the scale-up of harvests and sales at our Indiana farm, and construction at the Ohio farm all well underway, we are very optimistic for our shared future and progress in the months ahead.”
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