AquaBounty sells Canadian subsidiary to Kelly Grove Salmon

AquaBounty’s Canadian subsidiary, Aqua Bounty Canada, Inc., has recently been acquired by Kelly Grove Salmon, a subsidiary of Cooke Aquaculture, Inc. This acquisition was finalized through a share purchase agreement on February 27, with Kelly Grove Salmon purchasing all outstanding shares in Aqua Bounty Canada for $3,022,559 Canadian ($2,083,117.44 U.S.). This purchase agreement excludes Aqua Bounty Canada’s liabilities from an outstanding loan with Kelly Cove Salmon, resulting in a closing purchase price of $1,585,205 Canadian ($1,092,507.43 U.S.).

The assets acquired by Kelly Grove Salmon as part of this purchase include four buildings located on Prince Edward Island. These buildings consist of a hatchery facility equipped with modern egg incubation technology and a laboratory in Bay Fortune, as well as a modern recirculating aquaculture facility (RAS) in Rollo Bay. Additionally, there is an unfinished building in Rollo Bay that Kelly Grove Salmon plans to complete for another RAS. Glenn Cooke, the CEO of Cooke Aquaculture Inc., expressed that their freshwater science and fish health team will conduct a thorough assessment of these acquired facilities to determine their capabilities, resources, and expertise. He emphasized the importance of implementing hybrid systems that combine land-based hatcheries and ocean farming as a responsible and sustainable approach to salmon farming for food production.

The sale of Aqua Bounty Canada also includes the transfer of intellectual property and regulatory approvals for AquaBounty’s genetically engineered AquAdvantage salmon. This acquisition entails the ownership of live AquAdvantage fish that remain in the Fortune Bay hatchery. Kelly Grove Salmon affirmed in its press release that it has no intention of engaging in the farming or sale of genetically modified seafood. AquaBounty has been granted a royalty-free license to continue using the transferred trademarks for its ongoing operations.

As outlined in AquaBounty’s SEC filing, Kelly Grove Salmon will inherit Aqua Bounty Canada’s outstanding loans valued at $4,643,109 Canadian ($3,196,618.04). Kelly Grove Salmon plans to resume and manage operations in Canada, and has taken the initiative to rehire seven former AquaBounty employees who were laid off following the company’s announcement of winding down its operations.

This acquisition marks a significant transition for AquaBounty and its Canadian subsidiary, as operations and ownership are transferred to Kelly Grove Salmon under Cooke Aquaculture’s umbrella. Kelly Grove Salmon’s vision of responsible and sustainable salmon farming aligns with AquaBounty’s existing initiatives, ensuring a seamless transition of operations and regulations. Gray Cooke emphasizes the importance of integrating efficient land-based hatcheries with ocean farming practices to achieve optimum growth of local salmon for food production. With AquaBounty retaining access to their trademarked technologies and intellectual property, both companies look forward to a future of collaborative growth and innovation in the aquaculture industry.