The company that wants to build a salmon farm in the Bar Harbor area dropped its lawsuit against the state Monday and plans to resubmit its application for approvals, a company spokesman said Tuesday.

American Aquafarms wants to build a closed net pen system in Frenchman Bay to grow salmon and process the fish at a former factory in nearby Gouldsboro. But the state rejected its application in April, saying that it did not adequately identify a source for its fish eggs.

That sparked a lawsuit in May in which the company challenged the decision by the state Department of Marine Resources and asked a judge to send it back for further consideration.

But on Monday, the company asked for the matter to be dismissed. Company spokesman Tom Brennan said that’s because they want to work with the state to understand what will be required to get the necessary approvals.

“The basis for that is it’s much easier to make progress when you’re in dialogue than when you’re in a fight,” Brennan said.

Project opponents Frenchman Bay United said in a press release they hailed the dismissal of the lawsuit and hoped it signaled that the company was pulling up stakes in Maine.

“We hope that this is the end for American Aquafarms, but we remain vigilant and ready to challenge any subsequent applications they may file that would jeopardize Maine’s brand: clean water, thriving natural habitats, pristine wilderness, and a robust, owner-operated working waterfront,” Henry Sharpe, board president of Frenchman Bay United.

Brennan said the company is committed to Maine and recently purchased a former factory in Gouldsboro as part of their future plans. He said now that the lawsuit has been dropped and there’s no pending application before the state, the company hopes to work with regulators to find out what they need to do to get the permits they need.

He said the company did not have a specific timetable to reapply, but that they are anxious to begin talks with the state.

“As soon as we can have that dialogue it will determine what we need to do to the application,” he said. “We will (reapply) as soon as we can.”

The project is one of four large-scale fish farms to seek approvals in recent years. Just last week, voters in Jonesport rejected a six-month moratorium, paving the way for final local consideration of a land-based yellowtail kingfish farm. In Belfast, a land-based salmon farm has received all state and federal permits, but a legal challenge is pending.

And in Bucksport, another land-based salmon farm on a former mill site has received all approvals, but has yet to break ground.