AquaBounty to sell off Canadian hatchery
Land-based salmon farmer AquaBounty Technologies has announced plans to sell off its farm and hatchery at Rollo Bay on Prince Edward Island, Canada.
AquaBounty, a US company, is investing heavily in a new farm site in Ohio, which will allow it to produce its genetically-modified (GM) salmon at a commercial scale. Construction costs for the new plant have rocketed, however, and AquaBounty has been looking for ways to raise capital. In July, the company announced that it had sold its Indiana farm to another fish farmer, Superior Fresh of Wisconsin.
Now, AquaBounty says it has made the decision to sell its Rollo Bay farm operation. The farm, located on Prince Edward Island in Canada, was purchased by the Company in 2016 and further developed into a broodstock and egg production operation.
It had originally been developed to provide a proof of concept for the company’s GM salmon, which combine Atlantic salmon genes with elements from two other salmonid species, but the farm and hatchery now also provide non-GM salmon ova to other producers.
The Company’s investment banker is conducting the sale process, which is expected to be completed before year end.
David Melbourne, CEO AquaBounty
David Melbourne, Chief Executive Officer of AquaBounty, said: “We continue to be focused on securing funding for both our near and long-term needs, so that we can return to pursuing our growth strategy. The Rollo Bay farm was purchased and developed to support an expansion plan for five large land-based grow-out farms.
“Since we will not require the egg output from the Rollo Bay farm in the near to mid-term timeframe, and since we will retain sufficient egg production capacity for our Ohio farm from our hatchery in Bay Fortune, we have determined that the Rollo Bay farm can be sold at this time to resolve the Company’s immediate cash requirements, without impacting our long-term strategy. We are also continuing to pursue additional funding and strategic alternatives with the goal of securing our cash requirements in the coming months,” he concluded.
David Melbourne took over from former CEO Sylvia Wulf, who is now non-executive Chair of the AquaBounty board, in June of this year.
