Land-based salmon farmer AquaBounty Technologies said Thursday it was granted an 180-day extension to give it time to bolster it stock price.
On Oct. 31, AquaBounty was informed by the Nasdaq that it did not comply with the minimum bid price requirement for continued listing on the Nasdaq Capital Market exchange because the closing bid price for its common stock had been below $1 (€0.90) per share for the past 30 consecutive business days.
At that time, Nasdaq informed AquaBounty that it had a period of 180 calendar days, or until May 1, 2023, to regain compliance to maintain its Nasdaq listing.
To regain compliance during the additional time period, the closing bid price of the company's common stock must be at least $1 per share for a minimum of 10 consecutive business days.
Despite a period in late January and early February when the company's stock price exceeded the minimum $1 amount, it was unable to string together 10 consecutive business days of the higher share prices.
AquaBounty's share price sat at $0.55 (€0.50) at the close of the market on Wednesday
On Tuesday, Nasdaq officials granted AquaBounty the extension.
AquaBounty CFO David Frank told IntraFish in an emailed statement that the company was granted the extension for meeting the market value threshold for listing, among other requirements.
Frank added that the company "intends to take any reasonable measures to maintain its Nasdaq listing within the compliance period."
Q1 losses grow
The company's first quarter loss grew by more than 27 percent to $6.5 million (€5.9 million) from $5.1 million (€4.6 million) a year earlier as repairs to its Indiana farm dragged down revenue.
Revenue plunged 59 percent against the same period of 2022 to $398,000 (€360,995), the company reported Thursday.
"The year-over-year revenue decline for the quarter was related to the scheduled downtime needed to make facility repairs," AquaBounty CEO Silvia Wulf said.
The company currently operates two salmon farms: a refurbished 1,200-metric-ton production growout farm in Indiana and a broodstock farm on Prince Edward Island, Canada.
Since last year, the firm has been grappling with rising interest rates and rising construction costs for its Ohio farm. The total project cost is estimated to be between $375 million (€337 million) and $395 million (€355 million), a price tag significantly higher than initial estimates.
In 2022, AquaBounty posted a slight decline in full-year net losses to $22.2 million (€20.9 million).
It harvested 430 metric tons in Indiana and 53 metric tons at the Canadian site.
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