Aqua Bounty Technologies, Inc. Completion of NASDAQ Listing and Fundraising (5604U)
January 19 2017 - 2:00AM
UK Regulatory
TIDMABTU
RNS Number : 5604U
Aqua Bounty Technologies, Inc.
19 January 2017
19 January 2017
AquaBounty Technologies Inc.
("AquaBounty" or the "Company")
Completion of NASDAQ Listing and Equity Subscription
AquaBounty Technologies, Inc. (AIM: ABTU; NASDAQ: AQB), a
biotechnology company focused on enhancing productivity in
aquaculture and a majority-owned subsidiary of Intrexon Corporation
(NYSE: XON) ("Intrexon"), announces that it has completed the
listing of its common shares on the NASDAQ Stock Market and
finalized the equity subscription from Intrexon.
"AquaBounty's listing on NASDAQ represents an important
milestone for the Company that will broaden our exposure to the
U.S. markets as we advance plans for commercial production of our
pioneering, environmentally responsible approach to fish farming,"
said Ronald L. Stotish, Ph.D., Chief Executive Officer of
AquaBounty.
"Aquaculture is the fastest-growing segment of food production
globally, with estimates anticipating a doubling of farmed fish
production by 2050. Commensurate with the industry's rapid growth,
stresses on the oceans and new challenges resulting from open-sea
cage farming are expected to rise. Our game-changing platform
affords better economics for land-based aquaculture and all the
advantages that it brings, including nutritious Atlantic salmon
free of antibiotics, vaccines, and other treatments that are
necessary to minimize infection in fish farming today," added Dr.
Stotish.
NASDAQ Listing
Further to the Company's announcement of 7 November 2016 that it
had filed a Form 10 registration statement (the "Registration
Statement") with the U.S. Securities and Exchange Commission (the
"SEC") to register its Common Shares ("Common Shares") pursuant to
Section 12(b) of the Securities Exchange Act of 1934, the Company
now announces that it has completed the SEC review process and has
received approval to list its Common Shares on NASDAQ.
The Company's Common Shares will trade under the symbol AQB on
NASDAQ commencing on 19 January 2017, and will continue to trade on
AIM under the symbol ABTU.
Equity Subscription
The Company executed a share purchase agreement ("Share Purchase
Agreement") with Intrexon on 7 November 2016 for the issuance and
sale of 2,421,073 Common Shares (after the effect of the 1-for-30
reverse share split, the "Subscription Shares") raising $25.0
million (approximately GBP20.3 million) before expenses (the
"Fundraising"). This equity subscription was conditional, inter
alia, on admission of the Subscription Shares to trading on AIM
("Admission"), as well as the approval of the Company's listing on
NASDAQ. Both of these conditions will be met today. The issue price
of the Subscription Shares is 840 pence ($10.326, based on a
conversion rate of GBP1:$1.2293) per share, which represents the
closing price of the Company's Common Shares on AIM on 2 November
2016 (after the effect of the 1-for-30 reverse share split), which
was the latest practical date for calculation prior to the approval
of the transaction by AquaBounty's Independent Directors.
Use of Proceeds
As stated in the statement issued on 7 November 2016, the
Fundraising will provide ongoing working capital and investment
requirements to progress the Company's strategy over at least the
next two years.
Specifically, management is evaluating several paths to revenue
generation that follow different timelines, including production of
AquAdvantage(R) fish at the Company's existing farm in Panama,
purchase of an existing production facility in North America, and
construction of a new production facility in North America.
Share Distribution
In conjunction with the completed listing of the Common Shares
on NASDAQ and the Fundraising, Intrexon has distributed 1,776,557
of its holdings of Common Shares of AquaBounty (the "Distribution
Shares") via a share dividend to its shareholders (the
"Distribution"). This Distribution was completed to help AquaBounty
satisfy certain listing requirements on NASDAQ for publicly held
shares.
Admission and Total Voting Rights
The 2,421,073 Subscription Shares have been issued subject to
Admission and will be credited as fully paid and will rank pari
passu in all respects with the existing Common Shares. Admission of
the Subscription Shares to trading on AIM is expected on 19 January
2017.
Prior to the Fundraising and the Distribution, Intrexon held
4,516,731 Common Shares (representing 69.88% of the outstanding
Common Shares). With the completion of the Fundraising and the
issuance of the Subscription Shares and the distribution of the
Distribution Shares, Intrexon now holds 5,161,247 Common Shares in
the Company, representing 58.09% of the enlarged issued-share
capital of 8,885,008 Common Shares. Each share carries the right to
one vote, and therefore the total number of voting rights in the
Company will be 8,885,008.
Safe Harbour Statement
Some of the statements made in this press release are
forward-looking statements. These forward-looking statements are
based upon the Company's current expectations and projections about
future events and generally relate to the Company's plans,
objectives, and expectations for the development of the business,
including the occurrence and timing of the Fundraising, the
conversion of outstanding amounts under the Company's convertible
loan, the Admission of the Subscription Shares and Conversion
Shares, and the listing of Common Shares on NASDAQ, as well as the
length of time the Fundraising will allow the Company to operate.
Although management believes that the plans and objectives
reflected in or suggested by these forward-looking statements are
reasonable, all forward-looking statements involve risks and
uncertainties and actual future results may be materially different
from the plans, objectives, and expectations expressed in this
press release.
This announcement contains inside information.
Enquiries:
AquaBounty
David Frank, Chief
Financial Officer +1 978 648 6048
Stifel Nicolaus Europe Limited
Stewart Wallace +44 20 7710 7600
Luther Pendragon
Harry Chathli, Claire
Norbury +44 20 7618 9100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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