AquaBounty's board declines reverse stock split for now

AquaBounty Technologies, Inc. (Nasdaq: AQB) has decided not to carry out, at this time, the reverse stock split its stockholders approved in June, according to a Form 8-K dated July 6, 2026, and filed July 8, 2026. The board considered the split on July 6, 2026, and decided not to effect it at this time. The filing says the board concluded that the proposed reverse split is not in the best interests of the company and its stockholders. The filing is signed by David A. Frank, Interim Chief Executive Officer, Chief Financial Officer and Treasurer.

The approval

At the company's Annual Meeting of Stockholders on June 23, 2026, stockholders approved a proposal giving the board discretionary authority to effect a reverse split of AquaBounty's common stock, par value $0.001 per share. The ratio could range from 1-for-5 to 1-for-20, inclusive. The board would set the ratio and the timing in its sole discretion, but in no event later than July 31, 2026. The company reported that approval in a Form 8-K dated June 25, 2026.

The decision

The board evaluated the company's current circumstances before deciding against the split. As a result, the authority granted by stockholders will expire on July 31, 2026, without having been exercised. No amendment to the company's certificate of incorporation will be filed in connection with the proposed split, and no further action on it will be taken.

The filing says that if the company decides in the future that a reverse split would be in the best interests of the company and its stockholders, it will seek new stockholder approval at that time.

The company's position

AquaBounty was incorporated in Delaware in December 1991 to research the commercial viability of antifreeze proteins. In 1996 it obtained exclusive licensing rights for a gene construct used to create farm-raised Atlantic salmon with faster growth rates. Its 10-K for 2025, filed March 31, 2026, says the company does not currently operate any salmon farms. It sold its Indiana Farm in July 2024, and in March 2025 it sold its Canadian Farms and the intellectual property for its genetically engineered Atlantic salmon, along with its trademarks and patents.

The company's primary remaining asset is its investment in the Ohio Farm Project, which consists of the remaining Ohio Equipment Assets and the land and construction in process. The company says it works with an investment bank on the best path forward for that asset, including a possible sale. It also received a non-binding Letter of Interest to purchase its Ohio subsidiary, which it is considering. The 10-K reports impairment charges of $129.8 million in 2024 and $14.4 million in 2025 by asset group, and says the Ohio Farm Project is treated as a discontinued operation.

Financial position

The company's XBRL data show research and development expense of $203,296 for 2024. The net loss was $18.5 million for 2025, compared with $149.2 million for 2024. Cash used in operations was $8.7 million in 2025, compared with $13.9 million in 2024. Year-end cash and cash equivalents were $501,295 at December 31, 2025, compared with $230,362 a year earlier.

The risks ahead

The stockholder authority for a reverse split lapses on July 31, 2026, and any later split would need new approval. The 8-K does not say what the board's concerns were or describe any other action on the common stock. The company has no salmon farms, and its main remaining asset is the Ohio Farm Project, which it has written down and is trying to sell or otherwise resolve with an investment bank. The only offer mentioned is a non-binding Letter of Interest. Cash used in operations was $8.7 million in 2025, against year-end cash of $501,295.

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