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By Agroempresario.com
Aspire Food Group, the Canadian pioneer in insect agriculture and operator of the world’s largest cricket processing facility, is navigating a difficult restructuring process amid mounting financial pressures and trade uncertainties. The company has laid off a significant portion of its workforce and scaled back production at its London, Ontario cricket farm but is actively pursuing a court-supervised rescue deal that aims to preserve its operations and secure long-term viability.
Founded in 2012 by five MBA students from McGill University, Aspire has grown to become a leader in producing cricket protein for pet food markets, primarily in the United States. However, recent shocks—most notably tariffs imposed by the Trump administration on Canadian goods entering the US—have disrupted Aspire’s commercial model, compounding challenges as it seeks to restructure and attract new capital.
In November 2024, Aspire laid off two-thirds of its approximately 150 employees and reduced production capacity at its London facility. A recent LinkedIn post confirmed further workforce cuts as the company faces ongoing financial strain.
CEO David Rosenberg, who joined Aspire in late 2023 after cofounding vertical farming startup AeroFarms, explained in an interview with AgFunderNews that despite significant yield improvements in cricket protein production, Aspire requires more capital to implement critical changes. “It’s very hard to raise capital with a lot of debt,” Rosenberg noted, highlighting the company’s negotiations with secured and unsecured debt holders through a court-supervised process.
Aspire’s primary customers are US pet food manufacturers, making it highly sensitive to cross-border trade policies. The tariffs announced by the Trump administration caused sudden disruption and volatility that severely impacted Aspire’s ability to execute long-term strategies.
“We’ve had to absorb shocks entirely outside our control,” Rosenberg said. “These tariffs fundamentally disrupted our primary market and introduced volatility that made it extremely difficult to execute on long-term plans. We’ve fought hard to navigate these headwinds—and are still doing everything we can to secure a solution that reflects the value we’ve built.”
In response to creditor Farm Credit Canada’s (FCC) application, FTI Consulting Canada Inc was appointed as receiver to oversee Aspire’s restructuring. Court documents filed on May 1 at Ontario’s Superior Court of Justice reveal FCC’s concerns about Aspire’s ability to secure emergency liquidity and repay debts.
“FCC has provided the Aspire borrowers with opportunities to secure emergency liquidity to meet pressing obligations such as payroll,” stated FCC’s lawyers. However, “it has become clear to FCC that the possibility of the Aspire Borrowers finalizing a Repayment Transaction in the near term and on terms satisfactory to FCC is negligible… It is time for a FTI, an independent and expert third party, to take control of the business.”
The court-supervised process aims to provide a structured framework for Aspire to negotiate a settlement with its creditors and pursue a transaction that could preserve operations and facilitate future growth.
Despite these challenges, Aspire has made strides in automating its operations and improving production efficiencies. The firm is in active discussions with prospective partners and has signed two term sheets that could underpin a transaction designed to scale its business and restore long-term value.
Aspire continues to operate with a core team of about 16 employees focused on these efforts, while the company explores possibilities for new markets beyond North America, including human food applications.
Aspire’s predicament echoes difficulties faced by other insect agriculture firms globally, such as European companies Enorm Biofactory, Ÿnsect, and Agronutris, which have all had to rethink their business models amid shifting investor sentiment.
An industry insider commented on the challenges unique to cricket protein producers: “It must be hard and expensive to be alone in the cricket sector when you have to do everything: technology, regulatory definitions, research, marketing, etc. Aspire had to go ‘all in’ on automation to stay competitive, but bioconversion rates and scale-up have stalled somewhat in recent years. Financial markets might not be patient enough.”
Aspire’s focus on cricket protein distinguishes it from other insect sectors like black soldier fly larvae (BSFL), which enjoy different production dynamics and market opportunities.
Aspire’s 150,000 square-foot facility in London, Ontario, is billed as the largest cricket processing plant worldwide. The plant produces frozen whole crickets, which are sold primarily to pet food manufacturers for further processing.
Funding for the facility included about 25% government grants, 30% loans, and the remainder from equity investments. In March 2023, Aspire indicated it had significant contractual commitments for most of its production capacity.
After acquiring the EXO cricket bar brand in 2018, Aspire sold it in 2021 to focus exclusively on cricket farming and protein production. This strategic pivot aimed to build scale and efficiency in a niche market with growing consumer interest.
Despite near-term financial challenges, Aspire remains focused on completing a successful restructuring and continuing to deliver sustainable protein solutions.
CEO David Rosenberg summarized: “We are incredibly proud of what this team has built. Aspire remains focused on concluding a successful transaction and continues to engage closely with all key stakeholders.”
Canada, London Ontario, United States, North America
