AquaBounty carries out reverse stock split to reduce number of shares

The board of North American land-based salmon farmer AquaBounty has approved a 1-for-20 reverse stock split of its common stock to be effective 12:01 a.m., Eastern Time, on October 16, 2023, and an associated reduction in the number of shares of common stock the company is authorised to issue.

AquaBounty, which farms salmon with an inherited genetic modification that makes them grow more quickly than conventional Atlantic salmon, expects its common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the commencement of trading on October 16, 2023, it said in a press release.

The Massachusetts-headquartered company has issued millions of new shares to raise capital over the past few years.

The 1-for-20 reverse stock split will automatically convert 20 current shares of the company’s common stock into one new share of common stock.

Fewer existing and future shares

After the effectiveness of the reverse stock split, the number of outstanding shares of common stock will be reduced from approximately 71.36 million to approximately 3.57 million, subject to adjustment to give effect to the treatment of any fractional shares that stockholders would have received in the reverse stock split. No fractional shares will be issued in connection with the reverse stock split, and stockholders who would otherwise be entitled to a fractional share will receive a full share.

In conjunction with the reverse stock split, the number of shares of common stock authorised to be issued will be reduced from 150 million to 75 million.

AquaBounty grows fish to harvest at a recirculating aquaculture system (RAS) facility in Indiana, United States, and operates a broodstock and egg production farm located on Prince Edward Island, Canada.

It is building a 10,000-tonne capacity RAS facility in Pioneer, Ohio.