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Company Announcements

Preliminary results and notification of AGM

RNS Number : 7779F
Aqua Bounty Technologies, Inc.
25 February 2015
 



25 February 2015

 

AquaBounty Technologies

("AquaBounty" or "the Company")

 

Preliminary Results for the year ended 31 December 2014

and Notification of AGM

 

AquaBounty Technologies, Inc. (AIM: ABTX, ABTU; OTC: AQBT), a biotechnology company focused on enhancing productivity in the aquaculture market and a majority-owned subsidiary of Intrexon Corporation (NYSE: XON), announces the Company's preliminary financial results for the year ended 31 December 2014 and gives notice of its 2015 Annual General Meeting ("AGM").

Financial and operational summary:

·     Completed an equity subscription of US$10.0 million

·     Expanded operations in preparation for regulatory approval

·     Progressed towards registering the Company's common shares with the U.S. Securities and Exchange Commission for a listing on NASDAQ

·     Operating spend was higher at US$7.1 million (2013: US$4.9 million) as the Company invested in operations and new research projects

·     Net loss increased to US$7.1 million (2013: US$4.7 million net loss)

·     Cash used during the year, net of new equity provided, increased to US$6.5 million (2013: US$4.0 million)

·     Cash at 31 December 2014 was US$5.2 million (30 June 2014: US$8.6 million; 31 December 2013: US$1.9 million)

 

Ron Stotish, Chief Executive Officer of AquaBounty, said: "In allowing the Arctic Apple and Innate Potato to be deregulated and planted for commercial use, the U.S. Department of Agriculture sent a clear signal that they are interested in science-based regulation and addressing future food needs.  We are encouraged by this because the key reason given by the USDA in deregulating these two food products - 'not likely to have a significant impact on the human environment' - mirrors the conclusion arrived at by the FDA about our AquAdvantage®Salmon.  Consequently, we remain confident that the FDA will also approve our application.  Meanwhile, the Company continues to make plans for the commercialization phase that will commence immediately following receipt of the approval."

 

For further information, please contact:

 

AquaBounty Technologies                                             +1 978 648 6000

David Frank, Chief Financial Officer

 

Oriel Securities Limited                                      +44 (0)20 7710 7499

Giles Balleny

 

Luther Pendragon                                                          +44 (0)20 7618 9100

Harry Chathli, Claire Norbury



AGM Notification

AquaBounty will be holding its Annual General Meeting on 28 April 2015 at 08:30 a.m. (Eastern Daylight Time) at the Millennium Bostonian Hotel, 26 North Street, Boston, Massachusetts.  Stockholders of record on 20 March 2015 shall be entitled to vote at the AGM.

 

Chairman's Statement

 

I reported last year that the Board would be working on the assumption that the approval of the New Animal Drug Application ("NADA") for AquAdvantage® Salmon ("AAS") from the U.S. Food and Drug Administration ("FDA") would be forthcoming during 2014 and, at which point, the Company would begin to move forward with its commercialization plans.  This assumption was based on the release of the draft Environmental Assessment ("EA") and preliminary Finding of No Significant Impact ("FONSI") by the FDA in December 2012, with no further demands being made of the Company and no new scientific or legal argument being presented against our application.  We were also greatly encouraged by the publication of the Significant New Activity Notice in November 2013 by Environment Canada that recognized that our hatchery, which produces sterile, all-female eggs, was no longer solely a research facility but could produce eggs on a commercial scale without harm to the environment or human health.  Based on these two significant regulatory events, the Company began preparations for the commercial production of AAS.  To date, however, the regulatory approval of our NADA has not been granted.

Commercial Activities

The management team has been significantly strengthened by the addition of Alejandro Rojas, who has been appointed to the position of Chief Operating Officer of the AquaBounty Farms division. Mr. Rojas, a salmon farming industry veteran, has responsibility for the development, and implementation once the appropriate approvals are received, of plans for the Company's commercial production activities.

During the year, the Company expanded its international commercial efforts with the commencement of the process to gain approval for the importation of AAS eggs for local field trials in Argentina, Brazil, South Africa and China.  This would complement our farm site in Panama, which continues to demonstrate the remarkable performance of AAS on a commercial scale. 

Fundraising

In January 2014, Intrexon Corporation ("Intrexon") agreed to undertake a subscription for new common shares to the value of US$10.0 million (approximately £6.0 million) before expenses.  The subscription price was 31.5 pence per share (US$0.5252) and the aggregate number of common shares subscribed was 19,040,366.  The transaction closed on 20 March 2014 with net proceeds to the Company of approximately US$9.7 million.  This further increased Intrexon's shareholding to 59.85%.

U.S. Listing of Shares

In preparation for an application to list on the NASDAQ exchange, AquaBounty sought to register its shares with the U.S. Securities and Exchange Commission ("SEC" or the "Commission").  In conjunction with this, the Company transferred its stock ledger from the U.K. to the U.S., and established a process to allow eligible shareholders to remove the restrictive legends on their shares and to dematerialize outstanding share certificates.  This allowed the Company to obtain deposit eligibility for its shares in the Depository Trust Company in the U.S. and in the CREST system in the U.K.  The Company has filed a registration statement with the SEC and received no further comments from the Commission.  However, the Company's shares are currently ineligible for admission to NASDAQ as they do not meet the initial listing requirements.  The Board is considering its options for resolving this issue and hopes to be able to fulfil the criteria for listing on NASDAQ in the coming months.  

Financial Outcome

Operating expenses for the year amounted to US$7.1 million (2013: US$4.9 million).  The increase was in line with the Board's directive to push forward with commercial activities, expand research projects under the Exclusive Channel Collaboration agreement with Intrexon and seek the U.S. listing for its shares.  Consequently, sales and marketing expenses were US$1.4 million (2013: US$0.7 million); research and development expenses were US$2.5 million (2013: US$1.9 million); and general and administrative expenses were US$3.2 million (2013: US$2.3 million).  As a result, the net loss for the year was higher at US$7.1 million (2013: US$4.7 million) and cash used for the year, net of new equity received, was US$6.5 million (2013: US$4.0 million).  Funds available at the year-end amounted to US$5.2 million.

Outlook

I reported last year that the FDA had been considering its responsibilities under the U.S. National Environmental Policy Act and had been working to finalize the EA and FONSI in conjunction with the approval of the application for AAS.  We cannot report any progress on this activity, however it remains our view that the conclusion of this process is to be expected at any time.  The strong support provided by Intrexon allows your Board to continue to work on the assumption that approval will be forthcoming in the U.S. and to respond to the positive indications that the Company is receiving in other countries. 

The Company entered 2015 with US$5.2 million of cash on hand.  With the continuation of the efforts begun last year to prepare the Company to commercialize AAS upon regulatory approval, it is likely that a fundraise will be required during the first half of the year.  More information on this will be communicated in the coming months.

 

 

 

 

R J Clothier

 

 

 


Consolidated balance sheet

 

As of 31 December


2014

2013

ASSETS




Current assets:




Cash and cash equivalents


$5,163,262

$1,875,749

Certificate of deposit


12,353

13,431

Other receivables


26,717

78,455

Prepaid expenses and other assets


101,679

220,888

Total current assets


5,304,011

2,188,523

Property, plant and equipment, net


913,703

1,016,843

Definite lived intangible assets, net


177,119

141,779

Indefinite lived intangible assets


191,800

191,800

Other assets


21,628

21,628

Total assets


$6,608,261

$3,560,573

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable and accrued liabilities


$677,162

$704,028

Total current liabilities


677,162

704,028

Long‑term debt


2,421,720

2,359,653

Total liabilities


3,098,882

3,063,681

Commitments and contingencies




Stockholders' equity:




Common stock, $0.001 par value, 200,000,000 shares authorized; 144,537,265 (2013: 125,305,471) shares outstanding


144,537

125,305

Additional paid‑in capital


87,591,702

77,582,210

Accumulated other comprehensive loss


(455,172)

(566,310)

Accumulated deficit


(83,771,688)

(76,644,313)

Total stockholders' equity


3,509,379

496,892

Total liabilities and stockholders' equity


$6,608,261

$3,560,573



Consolidated statements of operations and comprehensive loss

 

Years ended 31 December


2014

2013

2012

COSTS AND EXPENSES





Sales and marketing


$1,444,628

$678,153

$581,954

Research and development


2,497,935

1,895,056

1,628,593

General and administrative


3,192,716

2,302,279

2,101,260

Restructuring charge


-

-

93,780

Total costs and expenses


7,135,279

4,875,488

4,405,587

OPERATING LOSS


(7,135,279)

(4,875,488)

(4,405,587)

OTHER INCOME (EXPENSE):





Gain on royalty based financing instrument


-

186,980

-

Interest and other income (expense), net


7,904

(530)

(9,026)

Total other income (expense)


7,904

186,450

(9,026)

NET LOSS


$(7,127,375)

$(4,689,038)

$(4,414,613)

OTHER COMPREHENSIVE INCOME (LOSS):





Foreign currency translation gain (loss)


111,138

93,891

(9,397)

Total other comprehensive income (loss)


111,138

93,891

(9,397)

COMPREHENSIVE LOSS


$(7,016,237)

$(4,595,147)

$(4,424,010)






Basic and diluted net loss per share


$(0.05)

$(0.04)

$(0.05)

Weighted average number of common shares - basic and diluted


140,389,712

120,613,246

94,701,028

 

 



Consolidated statements of changes in stockholders' equity (deficit)

 





Accumulated




Common stock


Additional

other




issued and

Par

paid‑in

comprehensive

Accumulated



outstanding

value

capital

loss

deficit

Total

Balance at 31 December 2011

68,780,968

$68,781

$69,700,198

$(650,804)

$(67,540,662)

$1,577,513

Net loss





(4,414,613)

(4,414,613)

Other comprehensive loss




(9,397)


(9,397)

Issuance of common stock, net of expenses

33,277,870

33,278

1,709,200



1,742,478

Share based compensation - common stock

196,850

197

23,353



23,550

Share based compensation - options



300,758



300,758

Balance at 31 December 2012

102,255,688

$102,256

$71,733,509

$(660,201)

$(71,955,275)

$(779,711)

Net loss





(4,689,038)

(4,689,038)

Other comprehensive income




93,891


93,891

Issuance of common stock, net of expenses

22,883,295

22,883

5,702,724



5,725,607

Exercise of options for common stock

29,500

29

3,971



4,000

Exercise of options for common stock - cashless

71,771

72

(72)



-

Share based compensation - common stock

65,217

65

22,747



22,812

Share based compensation - options



119,331



119,331

Balance at 31 December 2013

125,305,471

$125,305

$77,582,210

$(566,310)

$(76,644,313)

$496,892

Net loss





(7,127,375)

(7,127,375)

Other comprehensive income




111,138


111,138

Issuance of common stock, net of expenses

19,040,366

19,041

9,724,445



9,743,486

Exercise of options for common stock

120,000

120

12,180



12,300

Share based compensation - common stock

71,428

71

25,506



25,577

Share based compensation - options



247,361



247,361

Balance at 31 December 2014

144,537,265

$144,537

$87,591,702

$(455,172)

$(83,771,688)

$3,509,379

 

 



Consolidated statements of cash flows

 

Years ended 31 December

2014

2013

2012

OPERATING ACTIVITIES




Net loss

$(7,127,375)

$(4,689,038)

$(4,414,613)

Adjustment to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

140,742

147,101

225,416

Share‑based compensation

272,938

142,143

324,308

Amortization (accretion) of discount (premium) on corporate bonds

-

-

(326)

Loss on disposed assets

-

-

5,776

Gain on royalty based financing instrument

-

(186,980)

-

Changes in operating assets and liabilities:




Other receivables

48,054

(57,264)

90,907

Prepaid expenses and other assets

117,876

(94,935)

121,481

Accounts payable and accrued liabilities

(13,135)

281,345

(68,404)

Net cash used in operating activities

(6,560,900)

(4,457,628)

(3,715,455)

INVESTING ACTIVITIES




Purchases of equipment

(116,911)

(99,500)

(52,841)

Paid out (reinvested) interest on certificate of deposit

-

(6)

6

Payment of patent costs

(35,340)

(42,249)

(69,210)

Net cash used in investing activities

(152,251)

(141,755)

(122,045)

FINANCING ACTIVITIES




Proceeds from issuance of bridge loan

-

300,000

200,000

Repayment of bridge loan

-

(500,000)

-

Proceeds from issuance of long-term debt

268,491

665,199

678,657

Repayment of other term debt

-

(68,327)

(68,575)

Proceeds from issuance of common stock, net

9,743,486

5,725,607

1,742,478

Proceeds from exercise of stock options

12,300

4,000

-

Net cash provided by financing activities

10,024,277

6,126,479

2,552,560

Effect of exchange rate changes on cash and cash equivalents

(23,613)

132

2,481

Net increase (decrease) in cash and cash equivalents

3,287,513

1,527,228

(1,282,459)

Cash and cash equivalents at beginning of year

1,875,749

348,521

1,630,980

Cash and cash equivalents at end of year

$5,163,262

$1,875,749

$348,521

SUPPLEMENTAL CASH FLOW INFORMATION




Interest paid in cash

$62

$4,223

$4,414

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR SELFULFISESE

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