AquaBounty Announces a Pause to Ohio Farm Construction While It Evaluates Scope Alternatives and a Possible Phased Approach

MAYNARD, Mass., June 02, 2023 (GLOBE NEWSWIRE) -- AquaBounty Technologies, Inc. (NASDAQ: AQB) (“AquaBounty” or the “Company”), a land-based aquaculture company utilizing technology to enhance operational performance and sustainability, announced today that the Company will pause the construction of its farm in Pioneer, Ohio due to a substantial increase in its estimated cost of completion. The Company will now take the required time to evaluate the timing and cost of size and scope alternatives, including a phased approach to complete the project.     

Sylvia Wulf, Chief Executive Officer of AquaBounty, said: “During the past three years, AquaBounty has been working with its design and construction partners to manage through and mitigate the increasing costs that were exacerbated by historic inflation levels to complete construction of its Pioneer, Ohio farm. As cost estimates provided by our initial design/construction firm continued to increase, we engaged a second construction firm in January of this year to review the current cost estimates and to rebid the remaining construction elements in order to finalize the project’s Guaranteed Maximum Price (“GMP”), which was integral to completing our municipal bond financing.

“Despite the value engineering and cost reduction efforts we undertook, the GMP estimate that we received came in at a price that is significantly above our previously disclosed estimate of $375 - $395 million. Given this information, we cannot finance the project through a municipal bond placement without a significant increase in the Company’s equity contribution. As a result, the Company has put an immediate pause on further construction of the site while the management team undertakes a detailed review of its strategic options, including evaluating a smaller scope or size for the farm.  

“We’ve been working closely with the Village of Pioneer on the water and wastewater lines for the Ohio farm and the Village has approved the creation of a public utility, which will own and operate the water and wastewater lines required for the farm’s operation. AquaBounty is currently waiting for the issuance of the Right of Way (“ROW”) permit from Williams County. As we have said from the beginning, we are excited about what our project can contribute to the Village and the County, and we are committed to being good neighbors and supporting the local community. We appreciate the support and collaboration from the State of Ohio, Williams County Economic Development Corporation and the Village of Pioneer.