AquaBounty S-3 Filing and general updates (AQB)
General video on hot stocks, penny stocks where i share my opinions and knowledge with the wider community
Hey guys, welcome back to my channel, I’m stockped and today we are going to cover off Aquabounty AQB.
Make sure you stick around to the end of the video, i’m pretty sure you’re going to like what i have for you!
We are going over
Latest News for AQB
Stock Chart Analysis
Future of AQB
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So for those who are new to the channel and you have never heard of Aquabounty, well let me tell you about this company.
AquaBounty Inc. develops and markets products to enhance productivity in land-based aquaculture. It offers AquAdvantage Salmon, a bioengineered Atlantic salmon for human consumption.
AQB have recently as of the 20th January filed an S-3 Form which is as you know a public offering of shares. This isnt a huge surprise to be honest and something we all knew going from previous offerings they are raising capital.
The offering is for 200 million split over a two year period, this wont be the same as the previous filings and will be spread out in split offerings. In the S-3 form, AQB have stated they they are still not profitable and the reason for the offering is due to CV19 hindering the operation and obviously causing some problems for them.
They state they have incurred significant losses since their inception and expect to continue to incur losses for the foreseeable future.
We are still waiting on news regarding the first aqua advantage salmon harvest which is due in the first quarter.
AQB mentioned they have experienced certain delays last year with capital projects, like the indiana farm, this was delayed and i imagine they will have delays with more coming capital projects relating to the scaling of their global operation. They are ofcourse using all measures available to them to mitigate any potential infections but as we all know, CV19 is a nightmare and no matter how much planning you have in place, things can go wrong. It does appear they are doing all they can to keep it BAU which is great.
Current demand for the product as of the S-3 filing states it has dropped off due to restaurants closing and other food outlets.
This will continue to be a problem until vaccines are fully rolled out across the US.
It appears they may have a problem with having too much stock on hand and risking loss through wastage, according to AQB they are looking to potentially donate some stock which is great, shows AQB having some ethical values.
Plans to construct five new farms in North America close to consumer consumption over the next few years.
The future for AQB is still positive, just because they are planning to release some new offerings over the course of the years isnt a major cause or concern, they just want to make sure they can still operate under these difficult conditions and maintain BAU.
I’m a tiny bit concerned they are still haemorrhaging money and losing so much money but understandable when the current climate is a very difficult one and completely out of their control. I would assume in a worse case scenario, AQB would be able to access some government funds seeing they are offering sustainable protein.
Additionally, as per my last video, i mentioned there would be scope down the line for AQB to seek regulatory approval for AquAdvantage Salmon, and they mention this in the S-3 filing stating they are seeking approval in Argentina, Brazil, China and Israel. I imagine all these countries would have a huge market for their product and will only add to the potential this company has. This is obviously another catalyst we can get excited about.