Aquaporin's High-Wire Act: DKK 78M Lifeline for a DKK 1B Water Tech Vision

COPENHAGEN, Denmark – December 19, 2025 – Danish water technology innovator Aquaporin A/S today launched a critical rights issue to raise up to DKK 78 million, a move the company says is essential to fund operations into 2027. The capital injection represents a high-stakes bridge between the firm's current financial pressures and its ambitious long-term vision of becoming a billion-kroner business built on its next-generation, nature-inspired filtration technology.

The announcement places Aquaporin at a pivotal juncture, highlighting the precarious journey of deep-tech companies attempting to commercialize world-changing science. With cash reserves dwindling, the success of this funding round is paramount, as failure could trigger "material uncertainty as to whether the Company can remain a going concern," according to its own official statement.

The Financial Tightrope

The urgency behind the rights issue is underscored by the company's recent financial performance. Aquaporin's cash and cash equivalents fell sharply from DKK 77.3 million at the end of 2024 to just DKK 29.4 million by June 30, 2025. This significant cash burn coincides with a challenging first half of the year, where revenue dropped to DKK 9.1 million, a steep decline from the DKK 29.2 million reported for the same period in 2024.

While the company has since lowered its full-year 2025 revenue guidance to between DKK 40-50 million, it still anticipates an EBITDA loss in the range of DKK 45-55 million. The planned rights issue, priced at DKK 1 per share, is designed to provide a crucial financial runway, securing its short-term capital needs until the second quarter of 2027.

This is not the first time the company has turned to the market for significant funding. In April 2024, Aquaporin successfully raised DKK 172 million. However, the continuous need for capital highlights the intense investment required to scale its operations and advance its research and development. The company has been transparent that even with a successful DKK 78 million raise, "additional capital is expected to be required before the second quarter of 2027" to fully execute its business plan.

A Vision Built on Next-Generation Biotech

While the short-term focus is on solvency, Aquaporin is asking investors to look further ahead to a future powered by its second-generation Aquaporin Inside® technology (AiG2). The company has set formidable long-term targets, aspiring to reach revenue in the DKK 1 billion range with a double-digit EBITDA margin within the next decade.

This growth is almost entirely dependent on AiG2, which is slated for commercial launch between 2027 and 2028. The technology is an evolution of its current Nobel Prize-winning platform, which embeds aquaporins—the proteins that transport water in living cells—into filtration membranes. This biomimetic approach promises highly efficient and selective water purification with significant energy savings.

The potential of this technology is not merely theoretical. A 12-month trial with Singapore's National Water Agency, PUB, demonstrated that Aquaporin's current biomimetic membranes could deliver up to 20% energy savings in the reverse osmosis stage of water treatment. The company expects AiG2 will further enhance efficiency and unlock industrial-scale applications for its Forward Osmosis products, a key growth driver in its mid-term strategy.

For 2026, Aquaporin projects its revenue will approximately double compared to 2025, yet it still anticipates an EBITDA loss between DKK 40-50 million, illustrating that the path to profitability remains a marathon, not a sprint.

The Deep Tech Commercialization Challenge

Aquaporin's situation serves as a classic case study in the "deep tech dilemma": the immense challenge of converting groundbreaking science into a commercially viable and profitable enterprise. The journey is characterized by long development cycles, substantial R&D expenditure, and a relentless need for capital to cross the so-called "valley of death" between innovation and market adoption.

The company's strategy involves disciplined cost control, aiming to maintain operating expenses and organizational size near current levels in the mid-term while continuing to invest in R&D. The goal is to achieve break-even on EBITDA by improving gross margins through a shift in product mix and cost-competitive outsourcing, all supported by the eventual launch of AiG2.

Recognizing the financial hurdles, Aquaporin's strategic review, initiated in August 2025, remains active. The company continues to "explore multiple opportunities in parallel to raising equity capital," including potential strategic partnerships or transactions. This signals an openness to collaborating with larger industry players who could provide not only capital but also the market access and scale needed to compete effectively.

A Crowded Market with Thirsty Customers

Aquaporin is not operating in a vacuum. The global market for advanced water technology is driven by powerful tailwinds, including increasing water scarcity, stricter environmental regulations, and a corporate push for sustainability. This creates a fertile ground for innovative solutions that can treat industrial wastewater, enhance drinking water quality, and reduce the energy footprint of water purification.

However, the field is also populated by established giants such as Veolia, Suez, Xylem, and DuPont Water Solutions. These multinational corporations possess vast resources, extensive distribution networks, and long-standing customer relationships. For Aquaporin's technology to succeed, it must not only be scientifically superior but also commercially competitive and scalable.

The company's future now hinges on the conviction of its existing shareholders and the broader market. The rights issue is the immediate test, a vote of confidence in management's ability to navigate the current financial constraints. Should it succeed, it will buy precious time for Aquaporin to advance its AiG2 technology from the lab to the global marketplace, where it must prove it can deliver on its promise to help solve the world's pressing water challenges.