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Aqua
Bounty Technologies, Inc. Completion of £20 million placing
March 15,
2006
Aqua Bounty
Technologies, Inc. (“Aqua Bounty” or “the Company”),
the biotechnology company focused on the development and marketing
of products to enhance the profitability of the aquaculture industry,
announces today that it has successfully placed, conditional upon
admission, 13,513,513 million common shares with institutional
investors at 148 pence per share (the "Placing Price")
raising £20 million before expenses (the “Placing”).
The Placing comprises the placing of 820,801 existing common shares
on behalf of selling shareholders (to raise gross proceeds of
approximately £1.2 million) and the placing of 12,692,712
new common shares on behalf of the Company to raise gross proceeds
of approximately £18.8 million).
Aqua Bounty’s
expected market capitalisation at the Placing Price will be approximately
£74 million. Dealings in the common shares are scheduled
to commence on AIM, the market of that name operated by the London
Stock Exchange on 20 March 2006, under the symbol ”ABTX”.
The Placing is fully
underwritten by Nomura Code Securities.
The Company
intends to use the net proceeds from the Placing for additional
launches of its lead product, Shrimp IMS in the key markets of
the Americas and Asia as well as for the commercialisation of
its developmental products. Shrimp IMS is an immune stimulant
that has been shown to increase
significantly survival of farmed shrimp and productivity of shrimp
farms.
Other products
in development include:
• VPX,
an innovative product which provides protection against White
Spot Syndrome Virus (“WSSV”), the most lethal disease
affecting shrimp. VPX is scheduled for launch in 2007;
• Currently
marketed diagnostic kits for the rapid detection of common shrimp
and salmon infections; and
• AquAdvantage™
broodstock, fast growing strains of fin fish scheduled for launch
in 2009, which will be able to increase significantly the profitability
of existing commercial fish farming.
Aqua Bounty
provides solutions to aquaculture’s production problems along
the entire supply chain, from early diagnosis to treatment and
prevention of disease. The Company targets premium sectors of
the aquaculture industry and its goal is to provide commercial
producers with a full portfolio of products.
Nomura Code Securities is acting as Nominated Adviser and Broker
to the
Company.
Commenting
on today’s announcement, Elliot Entis, Aqua Bounty’s
Chief Executive Officer, said:
“We
are delighted with the positive response we have received from
a base of highly regarded international investors in support of
the flotation of Aqua Bounty. Listing on AIM marks an important
step in our goal to become the leading provider of biotechnology
products to the rapidly growing aquaculture
market.
“We
are constantly striving to discover, develop and commercialise
new technologies for a sustainable aquaculture industry. With
the funds raised from the placing we will have sufficient resources
to develop our marketing capabilities for existing products, accelerate
the development of our products in the pipeline and achieve marketing
approvals from the major regulatory agencies worldwide.
“Aqua
Bounty is well positioned to capitalise on the growth of the worldwide
aquaculture market. We have innovative products in the market
and in the pipeline that we believe have the potential to deliver
substantial value to both our customers and our shareholders.”
For further information, please contact:
Bell Pottinger
Daniel de Belder / Emma Charlton / Alex Walton
020
7861 3232
Nomura Code
Securities
Charles Walker
020
7776 1200
About Aqua
Bounty
• The
Company is headquartered in Waltham, Massachusetts, USA. It operates
principally through two wholly owned subsidiaries, Aqua Bounty
Canada, in St John’s, Newfoundland, and Aqua Bounty Pacific,
in San Diego, California
• Aqua
Bounty has launched health and diagnostic products for the prevention
and control of shrimp diseases and is developing new products
to increase productivity and profitability in commercial fish
farming. The Company’s integrated approach to aquatic health
management means that Aqua Bounty is well positioned to capitalise
on the rapidly growing $60 billion per annum aquaculture industry
• The Company’s leading product, Shrimp IMS, a stimulant
for the shrimp immune system, has shown significant benefit to
commercial shrimp farmers through the Company’s initial marketing
in Mexico. Results have indicated that the use of Shrimp IMS treatments
has led to an increase in sales for its Mexican distributor, as
well as a return of investment of up to $2.5 for every dollar
spent on the product by the farmers
• Aqua
Bounty intends to increase its sales of Shrimp IMS in Mexico before
expanding into Central and South America and then into Asia in
2007. The Company also plans to launch VPX in 2007, an effective
preventative control against the lethal and widespread White Spot
Syndrome Virus (“WSSV”). WSSV can appear suddenly, can
kill entire shrimp stocks within 72 hours and has been responsible
for significant pre-harvest losses to shrimp stocks in the 1990s,
including over $1 billion of shrimp stock damage in the Americas
alone
• Aqua
Bounty is also developing fast growing strains of breeds of fin
fish which grow faster than traditional broodstock, known as AquAdvantage™
fish. This AquAdvantage™ fish are capable of reducing growth
to maturity time by as much as 50 per cent, resulting in substantial
productivity gains
for commercial fish farmers. The Company expects FDA approval
in H2 2006 prior to breeding and commercial launch in 2009
• Commercial
aquaculture, the controlled cultivation and harvest of aquatic
plants and animals, is the most rapidly growing segment of the
agricultural industry, accounting for more than $60 billion in
sales in 2003. While landbased agriculture is increasing at 2
per cent to 3 per cent per year, aquaculture has been growing
at an annual rate of approximately 9 per cent since 1970. (Source:
FAO)
• Aqua
Bounty’s strategy is to focus commercialisation initially
within the western hemisphere and launch in Asia after penetrating
several markets in the Americas. The Company intends to maximize
returns on research and development and resulting intellectual
property by supplying its products to the aquaculture industry
through existing distribution channels. This strategy will enable
Aqua Bounty to avoid the significant time and costs associated
with developing its own manufacturing, sales and distribution
infrastructure
These written
materials are not for distribution in the United States, Canada,
Japan, or Australia. The information contained herein does not
constitute an offer of securities for sale in the United States,
Canada, Japan, or Australia. Securities may not be offered or
sold in the United States absent registration under the US Securities
Act of 1933, as amended, or an exemption therefrom. Inion has
not and does not intend to register any of its securities under
US securities law. Accordingly, the securities may not be offered
or sold in the United States unless they are registered or exempt
from registration under applicable law or in transactions that
are exempt from registration. The securities will not be offered
or sold to the public in the United States.
This announcement
has been issued by the Company and is the sole responsibility
of the Company and has been approved solely for the purposes of
Section 21 of the Financial Services and Markets Act 2000 by Nomura
Code Securities Limited of 1 Carey Lane, London EC2V 8AE. Nomura
Code Securities Limited, which is regulated in the United Kingdom
by the Financial Services Authority, is acting for the Company
and no-one else in connection with this matter and will not be
responsible to any other person for providing the protections
afforded to clients of Nomura Code Securities Limited or for providing
advice in relation to this matter.
This announcement
does not constitute or form part of an offer, or any solicitation
of an offer, for securities and any purchase of or application
for shares in the placing should only be made on the basis of
information contained in the formal admission document issued
in connection with the placing and the admission. The price and
value of, and income from, shares may go down as well as up. Persons
needing advice in relation to any of the matters referred to herein
should consult a professional adviser.
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