AquaBounty's preferred stock converts into 8,077,043 common shares

AquaBounty Technologies, Inc. (Nasdaq: AQB) reported that all of its outstanding convertible preferred stock converted into common stock on October 23, 2026, the day the Securities and Exchange Commission declared its Form S-3 resale registration statement effective. A Form 8-K dated and filed October 23, 2026, reports the conversion under Item 8.01 (Other Events). The filing is signed by David A. Frank, Interim Chief Executive Officer, Chief Financial Officer and Treasurer. No preferred shares remain outstanding, and 13,291,953 shares of common stock were outstanding after the conversion.

The conversion

On October 7, 2026, AquaBounty entered into conversion agreements with the holders of all outstanding shares of its Series A Convertible Preferred Stock and Series B Convertible Preferred Stock. Under those agreements, the preferred shares would convert automatically into common stock, par value $0.001 per share, once the registration statement covering the resale of those shares became effective.

The filing says that on October 23, 2026, all 263,753 outstanding shares of Series A preferred stock and all 109,223 outstanding shares of Series B preferred stock converted automatically into an aggregate of 8,077,043 shares of common stock. The Series A conversion produced 5,771,929 shares and the Series B conversion produced 2,305,114 shares.

The company's business

AquaBounty was incorporated in Delaware in December 1991 to research the commercial viability of a group of proteins known as antifreeze proteins. In 1996 it obtained exclusive licensing rights for a gene construct used to create a breed of 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, consisting of the remaining Ohio Equipment Assets and the land and construction in process. The company says it continues to work with an investment bank to identify the optimal path forward for that asset, including a possible sale. It also received a non-binding Letter of Interest to purchase its Ohio subsidiary, which the company is considering. The Ohio Farm Project is treated as a discontinued operation in the consolidated financial statements.

The 10-K also reports impairment charges totaling $129.8 million in 2024 and $14.4 million in 2025 by asset group. The 2025 charge followed a reassessment at December 31, 2025, based on the potential net sale value of the Ohio Farm Project assets.

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 XBRL data also show cash and cash equivalents of $1.9 million at June 30, 2026, from a quarterly report on Form 10-Q.

The risks ahead

The conversion is done, but the company no longer operates salmon farms, and its primary remaining asset is the Ohio Farm Project, which it has already written down. It says it is working with an investment bank on the best path for that asset, including a possible sale, and is considering a non-binding Letter of Interest for its Ohio subsidiary. A non-binding letter commits no one to a deal. Cash used in operations was $8.7 million in 2025, against cash of $1.9 million at June 30, 2026. The sources give no date for any step.

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