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AQB - AquaBounty Technologies Inc News Story

$5.8 0.1  1.8%

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Small Cap
Market Cap £293.7m
Enterprise Value £148.7m
Revenue £140k
Position in Universe 3911th / 6938

AquaBounty Technologies Announces First Quarter 2021 Financial Results

Tue 4th May, 2021 9:05pm
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MAYNARD, Mass., May 04, 2021 (GLOBE NEWSWIRE) -- 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 its
fiscal first quarter ended March 31, 2021.

First Quarter 2021 Key Highlights
* Fortified balance sheet with $127.1 million in gross proceeds from the
closing of an underwritten public offering of common stock in February, to
provide further financing for Farm 3 and corporate working capital.
* Appointed veteran Atlantic salmon sales and marketing executive Dennis
Bryant as the Company’s Director of Sales, who will oversee all aspects of
building and servicing AquaBounty’s customer partnerships.
* Participated in key investor conferences to improve visibility within the
investment community, including the Canaccord Genuity 2021 Virtual
Sustainability Conference, the H.C. Wainwright Global Life Sciences
Conference, and the upcoming Oppenheimer Emerging Growth Conference.
Management Commentary

“During the first quarter of 2021, we completed the setup of our commercial
framework and we are now preparing for the first commercial scale harvest of
our genetically engineered (“GE”) salmon, which we expect to begin this
month,” said Sylvia Wulf, Chief Executive Officer of AquaBounty. “The
appointment of Dennis Bryant as our Director of Sales is a critical step in
our commitment to customer satisfaction, and we are confident that all key
processes are in place for the launch of our fish during May.

“We are looking forward to a successful commercial launch of our GE salmon,
which will mark a tremendous milestone that has been decades in the making. We
have the experience, capital and technology necessary to succeed, and the warm
reception from our potential customers has fortified our belief that
AquaBounty represents the next-evolution of land-based salmon farming. We
remain focused on continued execution in the weeks and months ahead as we
strive to create sustainable, long-term value for our shareholders.

“After successful sampling efforts of our GE salmon with widely respected
seafood distributors and other interested groups in the first quarter, we
began the customer onboarding process, which focused on finalizing planning
and allocations for our impending first harvest. Our GE salmon was well
received in sampling, and our sales team is very optimistic regarding
near-term demand expectations, considering the resurgence of the food service
industry as COVID-19 concerns begin to dissipate and consumers return to

“We raised $127.1 million in gross proceeds in a public offering of equity
in February to further finance the construction of our next farm with a
planned capacity of 10,000 metric tons, which will greatly increase the
Company’s growing capacity. We are currently in due diligence on the final
site location and expect to commence construction later this year and
commercial production in 2023. Ahead of these rigorous efforts, we have made
substantial progress on the farm design with our engineering and RAS
technology partners, ensuring we have an efficient, replicable facility design
that will serve us for years to come,” concluded Wulf.

First Quarter 2021 Financial Summary
* Revenue in the first quarter of 2021 was $74 thousand, as compared to $7
thousand in in the same period of the prior year. Revenue was impacted by the
continued effects of the COVID-19 pandemic on demand in the food service
industry, which has started to reemerge as vaccines become more widely
* Operating expenses in the first quarter of 2021 were $4.2 million, as
compared to $3.1 million in the same period of the prior year. The increase in
operating expenses was primarily due to production and headcount increases at
the Company’s two farms.
* Net loss in the first quarter of 2021 was $4.2 million, as compared to $3.1
million in the same period of the prior year.
* Cash, cash equivalents and restricted cash were $211.4 million as of March
31, 2021, compared with $96.3 million as of December 31, 2020. The Company
fortified its balance sheet with $127.1 million in gross proceeds from a
public offering of common stock in February.
About AquaBounty

AquaBounty Technologies, Inc. (NASDAQ: AQB) is a leader in the field of
land-based aquaculture and the use of technology for improving its
productivity and sustainability. The Company’s objective is to help ensure
the availability of high-quality seafood to meet global consumer demand, while
addressing critical production constraints in the most popular farmed species.
The Company’s genetically engineered salmon program is based upon a single,
specific molecular modification in salmon that results in more rapid growth in
early development. With aquaculture farms located in Prince Edward Island,
Canada, and Indiana, United States, AquaBounty is raising salmon that is free
of antibiotics and other contaminants, in land-based Recirculating Aquaculture
Systems (“RAS”) which are 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, as compared to traditional sea-cage farming.
For more information, please visit

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995, as amended, that involve
significant risks and uncertainties about AquaBounty, including but not
limited to statements with respect to the completion, timing, size, and use of
proceeds of the underwritten offering of common stock. AquaBounty may use
words such as “expect,” “anticipate,” “project,” “intend,”
“plan,” “aim,” “believe,” “seek,” “estimate,” “can,”
“focus,” “will,” and “may” and similar expressions to identify
such forward-looking statements. Among the important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are risks relating to, among other things, whether
or not AquaBounty will be able to raise additional capital, market and other
conditions, AquaBounty’s business and financial condition, and the impact of
general economic, public health, industry or political conditions in the
United States or internationally. For additional disclosure regarding these
and other risks faced by AquaBounty, see disclosures contained in
AquaBounty’s public filings with the SEC, including the “Risk Factors”
in the company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
and prospectus supplement for this offering. You should consider these factors
in evaluating the forward-looking statements included in this press release
and not place undue reliance on such statements. The forward-looking
statements are made as of the date hereof, and AquaBounty undertakes no
obligation to update such statements as a result of new information, except as
required by law.

Company Contact:
AquaBounty Technologies
Dave Conley
Corporate Communications
(613) 294-3078

Investor Relations:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
(949) 259-4987 

 AquaBounty Technologies, Inc. Consolidated Balance Sheets (Unaudited)                                                   
                                                                As of                                                    
                                                                March 31,                    December 31,                
                                                                2021                         2020                        
 Current assets:                                                                                                         
 Cash and cash equivalents                                      $     210,899,434            $      95,751,160           
 Inventory                                                            2,106,473                     1,525,377            
 Prepaid expenses and other current assets                            470,961                       405,370              
 Total current assets                                                 213,476,868                   97,681,907           
 Property, plant and equipment, net                                   27,904,874                    26,930,338           
 Right of use assets, net                                             327,386                       341,997              
 Intangible assets, net                                               242,120                       245,546              
 Restricted cash                                                      500,000                       500,000              
 Other assets                                                         84,685                        76,715               
 Total assets                                                   $     242,535,933            $      125,776,503          
 Liabilities and stockholders' equity                                                                                    
 Current liabilities:                                                                                                    
 Accounts payable and accrued liabilities                       $     1,555,066              $      1,760,103            
 Other current liabilities                                            62,765                        62,483               
 Current debt                                                         378,791                       259,939              
 Total current liabilities                                            1,996,622                     2,082,525            
 Long-term lease obligations                                          274,232                       290,327              
 Long-term debt                                                       8,622,436                     8,528,490            
 Total liabilities                                                    10,893,290                    10,901,342           
 Commitments and contingencies                                                                                           
 Stockholders' equity:                                                                                                   
 Common stock, $0.001 par value, 80,000,000 shares authorized;                                                           
 70,983,145 (2020: 55,497,133) shares outstanding                     70,983                        55,497               
 Additional paid-in capital                                           384,459,964                   263,629,116          
 Accumulated other comprehensive loss                                 (187,219      )               (267,258      )      
 Accumulated deficit                                                  (152,701,085  )               (148,542,194  )      
 Total stockholders' equity                                           231,642,643                   114,875,161          
 Total liabilities and stockholders' equity                     $     242,535,933            $      125,776,503          

 AquaBounty Technologies, Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) 
                                             Three Months Ended March 31,                               
                                             2021                             2020                      
 Product revenues                            $      74,372                    $      6,753              
 Costs and expenses                                                                                     
 Product costs                                      1,554,655                        841,434            
 Sales and marketing                                318,635                          50,788             
 Research and development                           500,620                          568,762            
 General and administrative                         1,785,510                        1,637,190          
 Total costs and expenses                           4,159,420                        3,098,174          
 Operating loss                                     (4,085,048  )                    (3,091,421  )      
 Other income (expense)                                                                                 
 Interest expense                                   (78,804     )                    (17,045     )      
 Other income (expense), net                        4,961                            (1,152      )      
 Total other income (expense)                       (73,843     )                    (18,197     )      
 Net loss                                    $      (4,158,891  )             $      (3,109,618  )      
 Other comprehensive income (loss):                                                                     
 Foreign currency translation income (loss)         80,039                           (381,985    )      
 Total other comprehensive income (loss)            80,039                           (381,985    )      
 Comprehensive loss                          $      (4,078,852  )             $      (3,491,603  )      
 Basic and diluted net loss per share        $      (0.06       )             $      (0.11       )      
 Weighted average number of common shares -                                                             
 basic and diluted                                  64,550,920                       27,116,754         

 AquaBounty Technologies, Inc. Consolidated Statements of Cash Flows (Unaudited)                                                            
                                                                                Three Months Ended March 31,                                
                                                                                2021                              2020                      
 Operating activities                                                                                                                       
 Net loss                                                                       $      (4,158,891   )             $      (3,109,618  )      
 Adjustment to reconcile net loss to net cash used in                                                                                       
 operating activities:                                                                                                                      
 Depreciation and amortization                                                         422,185                           347,859            
 Share-based compensation                                                              129,715                           205,353            
 Other non-cash charge                                                                 4,203                             —                  
 Changes in operating assets and liabilities:                                                                                               
 Inventory                                                                             (577,154     )                    (610,200    )      
 Prepaid expenses and other assets                                                     (63,966      )                    (107,922    )      
 Accounts payable and accrued liabilities                                              (274,486     )                    339,818            
 Net cash used in operating activities                                                 (4,518,394   )                    (2,934,710  )      
 Investing activities                                                                                                                       
 Purchase of property, plant and equipment                                             (1,208,183   )                    (691,351    )      
 Proceeds from sale of asset held for sale                                             —                                 98,000             
 Proceeds from legal settlement, net                                                   —                                 1,014,008          
 Other investing activities                                                            (11,010      )                    (1,307      )      
 Net cash (used in) provided by investing activities                                   (1,219,193   )                    419,350            
 Financing activities                                                                                                                       
 Proceeds from issuance of debt                                                        187,120                           —                  
 Repayment of term debt                                                                (38,885      )                    (39,391     )      
 Proceeds from the issuance of common stock, net                                       119,120,437                       14,521,704         
 Proceeds from the exercise of stock options and warrants, net                         1,596,182                         —                  
 Net cash provided by financing activities                                             120,864,854                       14,482,313         
 Effect of exchange rate changes on cash, cash equivalents and restricted cash         21,007                            (15,951     )      
 Net change in cash, cash equivalents and restricted cash                              115,148,274                       11,951,002         
 Cash, cash equivalents and restricted cash at beginning of period                     96,251,160                        2,798,744          
 Cash, cash equivalents and restricted cash at end of period                    $      211,399,434                $      14,749,746         
 Reconciliation of cash, cash equivalents and restricted cash reported                                                                      
 in the consolidated balance sheet:                                                                                                         
 Cash and cash equivalents                                                      $      210,899,434                $      14,749,746         
 Restricted cash                                                                       500,000                           —                  
 Total cash, cash equivalents and restricted cash                               $      211,399,434                $      14,749,746         
 Supplemental disclosure of cash flow information and                                                                                       
 non-cash transactions:                                                                                                                     
 Interest paid in cash                                                          $      73,685                     $      17,045             
 Property and equipment included in accounts payable and accrued liabilities    $      82,068                     $      257,884            


GlobeNewswire, Inc. 2021
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