Site engineering designs and permits underway, company to innovate by year end
MAYNARD, Mass., Nov. 02, 2021 (GLOBE NEWSWIRE) — AquaBounty Technologies, Inc. (Nasdaq: AQB) (“AquaBounty” or the “Company”), a land-based aquaculture company using technology to improve productivity and sustainability, today provided a company update on the progress of its large-scale salmon farming project in Pioneer, Ohio.
“We have made solid progress towards finalizing the technical site designs and obtaining permits since announcing our site in July,” said Sylvia Wulf, CEO of AquaBounty. “With hydrological studies completed, confirming that the quantity and quality of water available meets our needs as well as the needs of the local community, major water and environmental permits are currently underway. We remain on track with our preliminary schedule estimates to begin construction by the end of the year, with estimated commercial salmon storage in 2023. We are working closely with the Village of Pioneer, County of Williams, Ohio State, JobsOhio and the Regional Growth Partnership – whose continued support has been invaluable in our progress.
“As we progress on the final design of our 10,000 metric ton farm in Ohio, we have been able to further refine the projected cost of our project, which we estimate to be in the range of $290 million. $320 million, including a reserve for potential contingencies of $30 million.The increase from our previous estimates is due to several factors, including the cost of construction materials and system technology. recirculating aquaculture, as well as the inclusion of an on-site processing plant and water treatment facility.
“As we have already indicated, our capitalization plan for the financing of the farm project includes the leverage effect of our equity contribution with debt. At this point, we have begun the process of placing a mix of tax-exempt and taxable bonds through the Port Authority of Toledo-Lucas County, whose board has approved the issuance of a maximum of $300 million in bonds to support the financing of the project. We have also engaged Wells Fargo Corporate and Investment Banking to underwrite and market the bond offering, which we expect to complete in the first quarter of 2022. While there is still work to be done to complete this transaction, we believe this financing will be a major step. for the company.
“To meet the egg needs of the Ohio farm and future farms, we have made the decision to transition our grow-out farm operation in Prince Edward Island, Canada to the production of traditional salmon broodstock, eggs and fry, in addition to our genetically modified products. salmon eggs. This transition is expected to occur over the next two years and increase our egg production capacity from 8 million to 30 million eggs per year. There is a growing demand for traditional salmon roe in North America, so our increased egg production capacity should meet our own needs and create an additional revenue stream from traditional salmon roe.
“We believe that our 25 years of experience and learning from our current operations continues to position us to achieve our goal of profitably producing entry-level salmon safely, securely and sustainably. We look forward to finalizing the plans and construction schedule for our next-generation farm, which will ensure the safety of our fish from hatch to harvest, while maximizing long-term value creation for our shareholders,” said concluded Wulf.
AquaBounty Technologies, Inc. (NASDAQ: AQB) is a leader in land-based aquaculture and the use of technology to improve its productivity and sustainability. The company’s goal is to help ensure the availability of high-quality seafood products to meet global consumer demand, while meeting the critical production constraints of the most popular farmed species.
The company’s genetically modified salmon program is based on a single specific molecular modification of salmon that results in faster growth during early development. With aquaculture farms located in Prince Edward Island, Canada, and Indiana, USA, AquaBounty raises salmon free of antibiotics and other contaminants, in aquaculture systems recirculating (“RAS”) systems designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations. AquaBounty’s solution offers a reduced carbon footprint and no risk of pollution of marine ecosystems, compared to traditional marine cage farming. For more information, visit www.aquabounty.com.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended, including with respect to the commencement, completion, timing, terms, size and use of the proceeds from proposed bond financing with the Port Authority of Toledo-Lucas County, job creation plans, expected size of its Ohio facility, production capacity, construction schedule, permit or commercial storage, construction cost, and start-up costs, amount to invest in the project, availability and mix of debt and equity financing, capacity and approvals to convert operations on Prince Edward Island to broodstock, and capacity to produce eggs , fry and broodstock, and future revenue streams, prices and profitability. There is no guarantee that AquaBounty will succeed in raising the required capital for this project through the issuance of the bonds discussed herein. The forward-looking statements contained in this press release are neither promises nor guarantees, and you should not place undue reliance on such statements as they involve significant risks and uncertainties relating to AquaBounty. AquaBounty may use words such as “expect”, “anticipate”, “project”, “intend”, “intended”, “plan”, “aim”, “believe”, “seek” , “estimate”, “may”, “focus”, “will” and “may” and similar expressions to identify these forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks relating to, among other things, whether AquaBounty and its partners will commence or complete the proposed bond financing, the final terms of the project the bond financing, the market and other conditions of such an offer, the satisfaction of related closing conditions, the impact of the bond offer on the financial situation, the credit rating and the price of the AquaBounty’s stock, whether or not AquaBounty needs and is able to raise additional equity, whether AquaBounty will be able to meet bonding commitments, AquaBounty’s business and financial condition, AquaBounty’s ability to obtaining required regulatory approvals and permits, AquaBounty’s ability to build and operate the farm profitably, and the impact of general economy, public health, industry, or political conditions in the United States or abroad. For additional information regarding these and other risks facing AquaBounty, see the information contained in AquaBounty’s public filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10. -K and quarterly reports on Form 10-Q. You should consider these factors when evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. Forward-looking statements reflect AquaBounty’s current beliefs about its plans, intentions, expectations, strategies and prospects, which are based on information currently available to AquaBounty and assumptions AquaBounty has made as of the date hereof. AquaBounty undertakes no obligation to update these statements as a result of new information, future events or otherwise, except as required by law.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the bonds described herein, and there will be no sale of such bonds in any state or jurisdiction in which such offer, solicitation or sale would be illegal.
Greg Falesnik or Luke Zimmerman
MZ Group – MZ North America