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Item 7.01 Regulation FD Disclosure.
On August 11, 2022, AquaBounty Technologies, Inc. posted an investor presentation to its website. A copy of this presentation is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information included in this Current Report on Form 8-K pursuant to Item 7.01, including Exhibit 99.1 attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Investor presentation, furnished herewith. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AquaBounty Technologies, Inc. | ||||||
| (Registrant) | ||||||
| August 11, 2022 | /s/ David A. Frank | |||||
| David A. Frank | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1 I N V E S T O R P R E S E N T A T I O N AquaBounty Technologies, Inc. NASDAQ: AQB August 2022 AquaBounty.com 1
Forward-Looking Statements Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation are forward-looking statements, including, but not limited to, statements regarding the economic viability of land-based production facilities; the economic and operational benefits of Genetically Engineered (GE) salmon; the projected cost and timing of construction and completion for the Ohio Farm (and other future farms), and the availability and timing of debt financing these projects; projections for pricing, revenue, margin, and payback periods; the potential for increases in productivity, EBITDA, and the profitability of AquaBounty Technologies, Inc.(“AquaBounty”); the size and timing of future harvests and egg production; projected growth in seafood consumption and market size, expansion of the aquaculture industry, and increasing demand for salmon; growth rates of GE salmon and KPIs; continuing supply constraints and their impact on pricing; impacts of future environmental conditions; market interest in land-based aquaculture; anticipated benefits of GE salmon and land-based production to consumers and the environment; non-exposure to pathogens, parasites, or environmental contaminants; the use of antibiotics, chemicals, and medications; continued operational performance against targets; consumer acceptance of GE salmon; AquaBounty’s farm development and commercial strategy, including demonstration of commercial viability, successful positioning and messaging of GE salmon, the establishment and types of sales channels, agreements with distributors and industrial producers, joint-venture relationships, and progress against commercial launch timelines; potential for the development of additional products, traits, operational efficiencies and scale, nutritional enhancements, recirculating aquaculture system improvements; potential siting and countries for expansion; the completion of field trials, approval of GE salmon, and potential relationships with local partners in other markets. Although management believes that the plans, objectives, and expectations 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 presentation. These risks and uncertainties include, but are not limited to: (i) our limited operating history and track record of operating losses; (ii) our cash position and ability to raise additional capital to finance our activities, including to fund the construction and operation of Farm 3; (iii) the anticipated benefits and characteristics of GE salmon; (iv) the ability to secure any necessary regulatory approvals to commercialize any products; (v) our ability to adapt to changes in laws or regulations and policies; (vi) the uncertainty of achieving the business plan, future revenue, and operating results; (vii) the impact of business, political, legal, or economic disruptions or global health concerns, including the impact of the current global health pandemic, labor shortages and supply chain disruptions; (viii) developments concerning our research projects; (ix) our ability to successfully enter new markets or develop additional products; (x) competition from existing technologies and products or new technologies and products that may emerge; (xi) actual or anticipated variations in our operating results; (xii) market conditions in our industry; (xiii) our ability to protect our intellectual property and other proprietary rights and technologies; (xiv) the rate and degree of market acceptance of any products developed through the application of bioengineering, including bioengineered fish; (xv) our ability to retain and recruit key personnel; (xvi) the success of any of our future joint ventures, acquisitions or investments; (xvii) international business risks and exchange rate fluctuations; (xviii) the possible volatility of our stock price; (xix) our estimates regarding expenses, future revenue, capital requirements, and needs for additional financing , including to fund the construction and operation of Farm 3 and (xx) our ability to leverage our experience with Farm 3 to create additional farms. We caution you that the foregoing list may not contain all of the risks to which the forward-looking statements made in this presentation are subject. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, seeAquaBounty’s public filings with the Securities and Exchange Commission (“SEC”), available on the“Investors” section of our website at www.aquabounty.com and on theSEC’s website at www.sec.gov. Forward-looking statements are not promises or guarantees of future performance, and we may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements. Actual results or events could differ materially from the plans, intentions, and expectations disclosed in the forward-looking statements we make, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments that we may make. All information in this presentation is as of the date of its release, and AquaBounty undertakes no duty to update or revise this information unless required by law. AquaBounty.com 2
Company And Market Overview AquaBounty.com 3
AquaBounty: Leaders in Aquaculture and Biotechnology Key Milestones Company Profile 1989 First genetically engineered (“GE”) Atlantic salmon line created Headquarters: Maynard, MA 1995 Regulatory approval process begins for GE salmon Total Employees: 96 U.S. Food and Drug Administration (“FDA”) approves GE salmon 2015 RAS Farms: Albany, Indiana and for consumption in the US Prince Edward Island, Canada 2016 Health Canada approves GE salmon for consumption in Canada ▪ Committed to feeding the world with land-based salmon; farmed 2017 AquaBounty purchases Indiana Farm efficiently, sustainably and profitably ▪ Pioneers in land-based aquaculture, using proprietary technology 2018 Conventional salmon eggs enter Indiana farm hatchery to deliver game changing solutions to global problems 2019 GE salmon eggs enter Indiana farm hatchery ▪ Blazed the trail for genetically engineered animal protein; overcoming political, regulatory and perceptual hurdles 2020 First conventional salmon harvested in June ▪ Significantly increasing profitability for salmon farming in land- First GE salmon harvested in May based Recirculating Aquaculture Systems (“RAS”) 2021 Selected Pioneer, OH for first large-scale farm Regulatory approval for GE salmon granted in Brazil in June ▪ Leveraging 25+ years of operational experience with RAS to produce efficiently and ensure success of new farming methods 2022 Broke ground on Farm 3 site in Pioneer, Ohio AquaBounty.com 4
Investment Highlights 1 ▪ $17 billion global salmon market driven by a massive supply-demand imbalance and AquaBounty Technologies, Inc. 2 increasing need for fresh and nutritious proteins for a growing global population (NASDAQ: AQB) ▪ Proprietary salmon genetics utilized to create genetically engineered Atlantic salmon 6 Share Price $1.54 3 (GE salmon) - the first of its kind, genetically engineered animal approved for 6 Market Cap $109.5M consumption by FDA, Health Canada and CTN Bio Brazil 7 Cash $149.2M ▪ GE salmon offers superior economics vs. conventional salmon by enabling 70% more 7 harvest output while using 25% less feed⁴ – expected to provide EBITDA margins 2x Debt $8.8M higher than conventional salmon in land-based farms⁵ 6 Shares Outstanding 71.1M ▪ Competitive moat created by the regulatory framework gives us a significant lead on 6 Float Shares 65.3M anyone planning to come to market with genetically engineered salmon 6 Institutional Ownership 30.0% ▪ Process validation from the successful first harvest of conventional salmon in Q2 2020 6. Data as of August 9, 2022 and sales demand from GE salmon harvests since Q2 2021 7. Cash and debt as of June 30, 2022. Cash includes marketable securities and restricted cash. ▪ Construction on Pioneer, Ohio farm underway – a 10,000 metric ton commercial scale farm; confirmed basis of design; construction began in Q1 2022 ▪ Industry leading management team that brings significant food service, supply & production experience with a robust biotechnology & aquaculture background 1. FAO Statistical Data Search (December 2019) 4. Effects of combined ‘all-fish’ growth hormone transgenics and triploidy on growth and 2. Westhoek et al., The Protein Puzzle (2011) – United Nations nutrient utilization of Atlantic salmon (Salmo salar L.) fed a practical grower diet of known 3. U.S. FDA AquAdvantage Salmon Fact Sheet, https://www.fda.gov/animal-veterinary/animals-intentional- composition – Elsevier, May 24, 2013 genomic-alterations/aquadvantage-salmon-fact-sheet 5. Management estimates based on current assumptions AquaBounty.com 5
Experienced Management Team Alejandro Rojas, DVM Angela Olsen David Frank CFO and Treasurer Chief Operating Officer General Counsel Dr. Rojas is a renowned Ms. Olsen is an Mr. Frank has extensive expert in salmon farming. experienced legal advisor experience working with His areas of expertise early stage companies, driving key business include technical and outcomes through her both public and private and economic analysis for extensive US and global has completed financing M&A activities, new transactions for initial start- expertise in commercial species development and law, complex legal up, growth and M&A. He consulting on fish regulatory matters and brings a strategic outlook production, aquatic to company growth and a litigation relating to food, health, environment and agriculture and hands-on approach to cash biosecurity programs. biotechnology. management. Chris Beattie Melissa Daily David Melbourne Chief Commercial Officer Chief Scientific Officer Chief People Officer Sylvia Wulf Mr. Melbourne is a 30- Dr. Beattie has over 25 Ms. Daley is a strategic, year veteran of the CPG years of experience in President and CEO business-minded people industry, spending the the aquaculture sector. and culture leader focused Ms. Wulf has a reputation as a He brings extensive last 25 years with a focus on driving potential. She proven leader and accomplished on seafood. He has expertise in fish specializes in high executive driving both growth and expertise in Marketing, physiology, health, performing teams, DEI improved performance. Her diverse nutrition & technology Strategy, Corporate (Diversity, Equity and career encompasses executive level Communications, and specializes in Inclusion), novel change positions in General Management, Industry Relations and leveraging R&D knowledge into pipeline Sales, Marketing and M&A in a Government Affairs. management, and attracting development. variety of industries. and retaining talent. . AquaBounty.com 6
Population Growth and Environmental Challenges Creates Need for New Solutions Population Growth: ▪ Global population projected to grow to more than 9 1 billion people by 2050 – 26% growth in 30 years , with a growing middle class driving increased protein demand ▪ Protein consumption is predicted to nearly double from 2017 to 2050, with marine-based proteins gaining a growing market share² Environment: ▪ More than 90% of world's fisheries are fully fished or overfished, according to FAO’s The State of World Fisheries and Aquaculture 2020 It is projected that Aquaculture must produce ▪ Critical impacts on water and energy usage & the need nearly 47.5 million additional tons of fish by to reduce greenhouse gas emissions 2050 to meet future demand³. ▪ Viable sea cage farming has significant limitations: o Sea lice, algae bloom, ocean contamination We believe there is a better way! The ocean and wild fisheries are not the answer to feeding our growing population 1. World Populations Prospects 2019 – United Nations AquaBounty.com 7 2. Mowi Handbook 2020 3. Mowi Annual Report 2019
Atlantic Salmon – Large Market With Inefficient Supply Chain Land-Based RAS Farming Has Potential to Disrupt The Industry Market Dynamics 3-6 Days NORWAY, FAROE IS. kt Demand Drivers: ICELAND 1 Harvest 1,333 ▪ Salmon is widely known to be healthy & nutritious RUSSIA kt Market 42 Harvest 10 NORTH AMERICA kt ▪ Growing population and rising middle class, bringing Market 78 Harvest 142 EU kt an increased demand for healthy protein Market 565 ASIA kt Harvest 175 Harvest 0▪ COVID-19 drove demand for salmon for at home Market 1,069 Market 344 preparation 5-8 Days ▪ Per capita consumption of seafood has increased at an 5 annualized rate of 1.3% over the last five years LATIN AMERICA kt Harvest 701 Inefficient Supply Chain: Market 169 ▪ Current sea-cage operations are highly dependent on- air freight OCEANIA kt = High freight cost, large carbon Harvest 74 ▪ Supply is constrained in production locations for footprint, reduced product shelf life Market 64 environmental & regulatory issues related to 2 Global Atlantic Salmon Market = production methods 3 3 2.6 million metric tons worth $17.1 billion (Global supply is estimated to grow 4% annually from 2021 to 2026) 1. Salmon Nutrition: Everything You Need To Know About Salmon – NFI, July 1, 2019. A 4. Undercurrent News (August 30, 2021): US Atlantic Salmon Market in Midst of Guide To Eating Seafood During Pregnancy – Dish On Fish, April 25, 2019 Unprecedented Rebound 2. Kontali Analyse - Mowi Handbook 2021 5. IBISWorld “Fish & Seafood Aquaculture in the US” April 2021 AquaBounty.com 8 3. FAO Statistical Data Search May 11, 2021
Farmed Salmon Competitive Landscape ▪ Salmon farming competition is primarily in sea cages and to a lesser extent land-based farming ▪ Growing momentum in land-based salmon farming projects has the potential to further disrupt the industry Growth in Land-Based Salmon Farming International Sea-Cage Operations U.S. RAS Farms In Production Volume plans identified in 2018 vs 2019 (kt) IN – 1,200 mt 488,000 mt 1000 FL (Phase 1) – 10,000 mt 900 248,000 mt FL (Phase 2) – 25,000 mt 800 First Harvest 2020 700 North American RAS Farms 190,000 mt Announced and in Development 600 184,000 mt 500 OH – 10,000 mt 400 ME – 33,000 mt 179,000 mt 300 CA – 33,000 mt 200 ME – 20,000 mt 79,000 mt 100 NV – 15,000 mt 0 2019 2020 2021 2022+ MD – 100,000 mt 2018 Analysis 2019 Analysis VA – 10,000 mt AquaBounty.com 9 Sources: DNB Landbased Salmon; IntraFish Land-Based Salmon Farming Report 2019; SeafoodSource; company data and websites; Kontali Salmon World 2021
AquaBounty is Well Poised to Take Advantage of Fragmented State of Aquaculture 4 Market fragmentation plus favorable industry tailwinds Well-positioned over competitors to produce safe, ideally position AquaBounty to take market share secure, and sustainable salmon without premium pricing ▪ Aquaculture now supplies the majority of the fish we consume ▪ Enormous growth potential in land-based farming with shrinking wild salmon sizes and marine-based salmon farms under mounting pressure to clean up or close down ▪ Fewer than 100 land-based salmon projects globally, some attracting significant interest from private equity and investment banks ▪ Although more capital intensive than sea based net pens, proponents say land-based salmon farms offer the best opportunity at making seafood sustainable while reducing carbon footprint AquaBounty.com 10
AquaBounty’s GE Salmon: Better for the Environment. More for Consumers. Enhanced Benefits of Controlled Operations Compared To Sea-Cage Farming Faster Growth Critical during most vulnerable stages of fish lifecycle Lower Carbon Footprint Less Feed Used Greater than 95% water recycled and 25% improvement in Feed 1 reduced transportation to consumption Conversion Rate (FCR) Aquaponics / Hydroponics Biosecurity Efficient use of resources and waste Designed to prevent escapement utilization as agriculture fertilizer and impacts on broader ecosystem 1. Effects of combined ‘all-fish’ growth hormone No Chemicals or Antibiotics Customer Value Proposition transgenics and triploidy on growth and nutrient utilization of Atlantic salmon (Salmo salar L.) fed a Reduced risk of infections commonly Pricing strategy aligned to market rates with practical grower diet of known composition – Elsevier, May 24, 2013 potential to raise prices upon production of seen in sea-cage farming AquaBounty.com 11 Superior Grade salmon
State of The Current Business AquaBounty.com 12
We Continue to Achieve Key Milestones Scaling the Ramping Bringing GE Salmon Bolstering our Business Production to Market Balance Sheet • Made strong strides against • Implemented primary • Robust communications • Completed four equity our long-term plans to scale processing capability in platform in place to engage transactions, providing net commercial production and Indiana farm consumers, customers and proceeds of $224 million expand production capacity• Conventional salmon the culinary community• Toledo-Lucas County Port • Selected Pioneer, OH as harvest completed Q2 2020 • On-going dialogue with Authority board has location for our • Continuous harvesting of various sales channel approved the issuance of up technologically advanced, genetically engineered (GE) partners to continue to $300 million in bonds to modern RAS farm; broke salmon in Q2 2021 refining messaging and support the financing of the ground in Q1 2022• Converting 250 MT facility in pricing Ohio Farm project • Commenced pre-construction PEI to Broodstock facility for • All harvested GE salmon • Wells Fargo Corporate and activities including the production of both GE and have been sold with demand Investment Banking to construction of roadways, on- conventional salmon eggs continuing to build underwrite and market the site energy infrastructure and to meet internal demand • Indications of interest in bond placement land preparation and to sell conventional eggs long-term supply externally agreements AquaBounty.com 13
Indiana Farm Focused on Optimizing Farm Operations ▪ Continuously improving KPIs while delivering solid results with a less than optimal farm design or the latest technology demonstrates operational competence ▪ Established baselines for KPI’s and work to continuously improve against them ▪ Focus on consumption vs biomass for key cost elements, including electricity, water, oxygen, feed (conversion & consumption), and headcount ▪ Established standard operating procedures and work instructions used as basis for training and development ▪ Cost and performance improvement is on-going through R&D initiatives, including feeding trials, biofiltration/water management and density optimization AquaBounty.com 14 Source: Expected harvests based on AquaBounty Technologies, Inc. assumptions and projections.
Driving Growth & Expansion AquaBounty.com 15
Our Operating Model is designed to facilitate Growth & Expansion Our operating model allows us to seek out opportunities to grow organically through our internal expertise and inorganically through M&A, JV or investments RAS Farming Expertise ▪ Translatable to new species ▪ RAS technology improvements in biofiltration, fish husbandry, water quality Technology AQB OPERATING ▪ Breeding and genetic improvements in MODEL salmon and other species ▪ Fish Health and Nutrition including feed additives/ingredients ▪ Data solutions to improve operations or fish health ▪ Regulatory expertise facilitating required approvals Safe, Secure & Sustainable AquaBounty.com 16
Expansion Plans Proceeding for Ohio Farm Key Achievements Ohio Farm Partners ▪ Completed detailed cost estimates for our large-scale, 10,000 mt farm ▪ Selected Pioneer, OH, as the site from an initial pool of approximately 230 sites o Evaluation criteria included water/waste-water volumes, low electricity prices, proximity to major Ohio Farm Builder population centers, availability of labor pools and supportive political environment Leading design-build engineering firm in the o Received approval for water consumption permit and on track for remaining permit requirements food market o Basis of Design documents used to pursue construction bids and tax exempt “green bond” financing – value engineering ongoing for additional efficiency and cost optimization o Toledo-Lucas County Port Authority board has approved the issuance of up to $300 million in bonds to RAS Equipment Provider Designs advanced aquatic support project financing; bonds expected to be underwritten by Wells Fargo solutions for the aquaculture industry o Site preparation and construction began following groundbreaking ceremony in Q1 2022 o Expect to resume bond financing efforts and issuance of new construction sub-contracts in late Q3 once AquaBounty has completed its evaluation of relevant economic trends Site Selection Global site selection firm specializing in farming and aquaculture AquaBounty.com 17
AquaBounty in Pioneer, Ohio Preliminary Rendition of Pioneer Farm Site Overview ▪ Estimated Square Footage: 479,000 sq. ft. ▪ Expected to create 100+ jobs ▪ Groundbreaking Began: Q1 2022 Status Update ▪ Major permitting, engineering and site preparation work largely complete ▪ Underground work to lay piping for fish tanks underway ▪ Evaluation and progression of bond financing Template for Future Farms ▪ Knowledge in site selection, government regulations, financing, and engineering will create the template for planning additional farms including improved design and technology ▪ Incorporating key learnings from Ohio Farm will benefit start up and training for future farms AquaBounty.com 18
AquaBounty in Pioneer, Ohio – July 2022 Construction Status – work continues on the site, while AQB evaluates the current cost estimate. ▪ Roads and utilities have been established to the site ▪ Completed Grubbing and Grading ▪ Started work on Geo Piers ▪ Started work on underground piping AquaBounty.com 19
Continued Global Expansion Israel Two sites identified and in North America advanced discussions to form a 50/50 JV with a leading partner ▪ Continued expansion in U.S. and Canada for Farm 4 with potential for 3-5 farms by 2030 International ▪ Conversations continue with expansion partners in South America, Asia & the Middle East China ▪ Targeting high volume/strategic Net moving forward Import markets to include: with field trials - China: 198,000 mt in preparation - Brazil: 110,000 mt for regulatory approval - Israel: 40,000 mt - Argentina: 11,000 mt Brazil & Argentina Regulatory approval granted in Brazil (June 2021) & exploring potential operating partners AquaBounty.com 20
A Combination of Organic and Inorganic Opportunities Optimize Growth Portfolio Our focus is primarily on organic growth with a small portion dedicated towards inorganic growth opportunities Organic Growth Inorganic Growth PRIMARY SECONDARY Site Expansion Careful evaluation of 4-5 new farms operating at capacity by inorganic growth 2030, translating to 50,000 mt of output opportunities may enable: M&A • Accelerated profitability RAS Genetics • Acquisition of Egg production opportunity based on complementary market demand competence/skills • Penetration of new or JV emerging markets Ongoing R&D Projects • Acquisition of technologies Generate sustainable future revenue, aligned with core enhance ESG metrics, and improve strategies productivity/cost Investment Leveraging and extending our core competencies across: Genetics Fish Health / Nutrition RAS Technology AquaBounty.com 21
Key Financial Metrics AquaBounty.com 22
GE Salmon Economics vs. Conventional Salmon Throughput increase leverages site infrastructure Improved feed conversion by ~25% reduces feed costs Faster growth to harvest weight (> 4kg) results in 1.7X increase in harvest Feed is the largest variable GE salmon production cost 18 vs 26 mo’s Conventional 2X Farm EBITDA $¹ salmon 70% Production Advantage Conventional salmon in GE salmon in land-based Same sized farm land-based RAS EBITDA RAS EBITDA Faster growth to harvest accelerates returns on investment in farm operations 1. Management estimates based on current assumptions. EBITDA is defined as farm operation net income (loss), plus depreciation expense, other income/expense, including interest expense and interest income, and the provision for income taxes. Note: Current assumptions may turn out to be incorrect including changes in prices of feed and other variable costs or growth rate of the salmon AquaBounty.com 23 EBITDA
1 Ohio Farm Expected to Generate Industry-Leading Economics Profitable Land-Based Farming at Commodity Pricing Ohio Farm Projections ▪ Precision farming in conjunction with our technical points of difference ensure consistency in supply & cost Annual Output (live weight) 10,000 mt ▪ Biosecurity – protects from exposure to disease & parasites ▪ 100% grown, harvested & processed close to consumption 2 Annual Revenue $100 million ▪ A fresher product to market with significant reduction in transportation costs & carbon emissions Operating Margin % 31% Proprietary GE Atlantic Salmon Accelerates ROI EBITDA $44 million ▪ GE salmon delivers 2x EBITDA vs. conventional RAS salmon EBITDA Margin % 44%▪ GE benefits vs. conventional salmon reflect key advantages: o Reduced time to harvest, from 26 months to 18 months, EBITDA Return on Invested Equity 28% results in 70% more farm-gate weight at harvest per year o Improved feed conversion reduces feed costs by 1. Source: Expected harvests based on AquaBounty Technologies, Inc. assumptions and projections. 2. Revenue assumes commodity pricing, approximately 25%, which is the largest single component of - 90% fillet RAS production expenses - 10% HOG o Increased production levels result in operating leverage for farm labor & oxygen expenses AquaBounty.com 24
Estimate on Ohio Farm Cost of Construction Construction Cost Estimate Has Been Impacted By Current Economic Conditions ▪ Inflation is at a 40-year high ▪ Interest rates have been rising ▪ Current construction cost estimate now exceeds $320 million AQB’s Plans ▪ AQB is evaluating alternatives to reduce cost ▪ Possibly phasing construction with an initial output target below 10,000 metric tons ▪ Continuing value engineering ▪ Reviewing all current bid estimates ▪ Engaging Hill International to provide construction management oversight ▪ Construction will continue in the interim, while the scope and cost is evaluated AquaBounty.com 25
Q2’2022 Capitalization Cash, Marketable Securities and Restricted Cash (as of June 30, 2022, $ in thousands) $149,244 Debt (as of June 30, 2022, $ in thousands) ACOA AIF Grant, 0% Interest $2,227 ACOA Term Loan, 0% Interest, Matures February 2027 $136 ACOA Term Loan, 0% Interest, Matures September 2029 $312 ACOA Term Loan, 0% Interest, Matures December 2025 $194 Kubota Canada Ltd., 0% Interest, Matures January 2025 $28 Finance PEI Term Loan, 4% Interest, Matures November 2023 $1,880 Department of Fisheries and Oceans, 0% Interest, Matures August 2032 $441 First Farmers Bank & Trust Loan Facility, 5.3% Interest, Matures October 2028 $3,645 Warrants (Outstanding as of June 30, 2022, in thousands of shares) $3.25 Exercise Price 418 Common Stock (Outstanding as of August 9, 2022 in thousands of shares) 71,111 Source: AQB’s Q1’2022 10-Q AquaBounty.com 26
1 Current and Long-Term Growth Targets Performance Metrics Projected Production Output (mt) ▪ Production output growth target = 51,000 50,000 mt by 2030 ▪ Assumes 4 to 5 new 10,000 mt farms 41,000 36,000 ▪ Targeting non-dilutive financing sources (ex: debt) to leverage cash investment 26,000 ▪ Estimated EBITDA margin % per farm of 44% 16,000 ▪ Estimated EBITDA return on invested equity of 28% per farm 6,000 1,000 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. Based on AquaBounty Technologies, Inc. current assumptions and projections. These assumptions and projections may change in the future. AquaBounty.com 27
Let’s Have a Conversation AquaBounty uses next-generation land-based aquaculture and gene-editing technology that supports ocean conservation and provides consumers with regional access to nutritious, fresh and affordable salmon with no added antibiotics. Investor Relations AquaBounty Lucas A. Zimmerman David A. Frank Director – MZ North America Chief Financial Officer +1 (949) 259-4987 +1 (978) 648-6000 AQB@mzgroup.us dfrank@aquabounty.com AquaBounty.com 28