By: Jacob Kessler
THE VILLAGE REPORTER
jacob@thevillagereporter.com
AquaBounty has recently agreed to a sale of its Recirculating Aquaculture System facility in Albany, Indiana. The sale agreement was made with Superior Fresh for $9.5 million and included some equipment from the company’s site in Ohio.
Superior Foods is a Wisconsin-based company that specializes in combining salmon farming with growing organic leafy greens.
AquaBounty had originally put the Indiana site up for sale back in February in order to raise capital for its construction project in Pioneer.
This need for additional capital came after construction costs for the new facility increased substantially. Additionally, the sale was also made in order to help pay off a short-term loan recently obtained by AquaBounty.
At the time, both the Indiana Farm and Pioneer Farm were put up as collateral. This loan will mature on July 31st, 2024, or earlier depending on the sale of collateral or a default.
The sale, which was filed with the U.S. Securities and Exchange Commission on June 28th, is expected to close sometime in July.
This sale includes both the Albany, Indiana facility and equipment from the site in Pioneer. Included in the SEC filing is section 2.1 (b) which reads, “certain tangible personal property of the seller located at, or intended for use, at the Ohio seller’s Pioneer, Ohio facility, as more specifically listed on Schedule 2.1(b) (the “Ohio Equipment”).” At this time, what equipment this is referring to is not known.
This sale comes following the recent shakeup with company leadership. Back on June 7th, AquaBounty announced the promotion of David F. Melbourne Jr. to the role of Chief Executive Officer. This was to replace former CEO Sylvia Wulf, who will now act as a Board Chair.
A release from the company says, “On behalf of the Board of Directors, I am pleased to announce that Dave Melbourne will assume the position of President and Chief Executive Officer of AquaBounty, effective immediately,” said Wulf.
“This move has been part of our long-term succession plan for the leadership team, commencing with his promotion from Chief Commercial Officer to President in August 2023. Over the last year, Dave has led day-to-day business functions for the Company.”
“The Board recognizes the outstanding contributions and leadership he has provided over the last year, including his role in the efficient shutdown of our Indiana farm.”
“With his promotion, he will take on the additional responsibilities for the business including leading our pursuit of a range of financing and strategic alternatives, as well as investor relations and strategic initiatives to achieve AquaBounty’s growth plans.”
“Dave is a transformational leader and I have full confidence in his ability to take the reins at this critical point in time. I look forward to working with him in my continued role as Board Chair,” added Wulf.
“I am excited for the opportunity to lead the incredible AquaBounty team as its Chief Executive Officer, and together, deliver the financing required to stabilize the business in the short-term, and put in place the strategic imperatives to achieve our longer-term growth plans to benefit our company and stockholders,” said Melbourne.
“My immediate focus will be on securing the required financing to maintain liquidity and support current operations.”
“Working in conjunction with our investment banking partner, we will prioritize completing the sale of the Indiana farm and aggressively push forward on identifying and finalizing financing and strategic alternatives.”
“We have made great progress over the last five years across all areas of our business. We have leveraged our advantages of vertical integration; refined and improved our operational expertise and technical capabilities; made important strides forward in our breeding, genetics, and fish health and nutrition initiatives; and successfully launched our salmon into the U.S. and Canadian markets.”
“AquaBounty has a bright future, all supported by a strong, experienced and committed team. Together, we will face the challenges and look forward to driving continued progress,” concluded Melbourne.
A document filed with the SEC on June 6th, 2024, states the following. “Ms. Wulf has confirmed that her retirement is not due to a disagreement with the company on any matter relating to the company’s operations, policies or practices.”
A request for comment regarding the sale of equipment from the Pioneer Farm has been sent to the AquaBounty Media Relations representative from Fahlgren Mortine.
