NaturalShrimp Provides Update on Live Shrimp Deliveries to Gulf Seafood
La Coste Facility on Track and Expansion into Las Vegas to Serve New Markets and Geographic Reach to the West Coast
DALLAS, TX, Dec. 29, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- NaturalShrimp, Inc. (OTCQB: SHMP), a Biotechnology Aquaculture Company that has developed and patented the first shrimp-focused, commercially operational RAS (Recirculating Aquaculture System), today announced the Company’s ongoing sales of live shrimp to Gulf Seafood Inc. (GSI) have continued ramping up following the first commercial deliveries of live shrimp to customers in November. These deliveries are part of the previously announced purchase agreement signed in October for a three-month trial and delivery of 25,000 pounds of live shrimp which GSI will purchase, distribute and market.
The Company said increasing demand for smaller sized shrimp is resulting in expanding gross and operating profit margins due to the shorter grow-out period and corresponding reduction in resources needed to reach an earlier harvest.
Live sales continue shipping from the Iowa location and a live sales packaging line has been delivered to La Coste with first sales from La Coste expected during the first quarter of 2022. The trade partnership and collaboration with Gulf Seafood Inc. will continue in 2022 following success with the trial project and the increasing demand of live shrimp in multiple markets.
NaturalShrimp also announced it will be expanding into Las Vegas to serve additional markets and increase its geographic reach to the West Coast. The facility is in the early planning stage with construction expected to begin in 2022.
“We are pleased to announce that deliveries of live shrimp have ramped up since commencing in November and are going very well,” said Gerald Easterling, CEO of NaturalShrimp. “Gulf Seafood’s distribution network, experience in logistics and packaging technology enabled the delivery of NaturalShrimp to customers in several major cities and combined with increased demand, has driven our decision to expand into the Las Vegas market. The Las Vegas facility will also serve to increase the distribution reach of our shrimp to the West Coast with several cities and a large population within our shipping radius. The facility in Las Vegas will have the capacity to produce large shrimp with additional capacity for smaller shrimp having a shorter grow-out period where NaturalShrimp is starting to gain significant traction.”
William Delgado, Chief Financial Officer of NaturalShrimp, added, “The increasing demand for shrimp of a smaller size presents the Company with two significant opportunities as both a product offering that is gaining momentum and also offers material financial upside. The shorter grow-out period of smaller sized shrimp yields gross margins that are 3-4 times that of a full 24-week grow-out, and also significantly higher operating margins due to the consumption of less resources and economies of scale derived from the increased number of annual harvests.”
Stephen Alexander of Gulf Seafood, Inc. added, "Gulf Seafood has been excited to participate in the trial with NaturalShrimp to build, test and launch a system to package live shrimp in both Webster City and La Coste. NaturalShrimp has expedited the build of the packaging system which has allowed us to test and offer several customers multiple commercial deliveries. After receiving positive customer feedback, we expect to continue live shrimp deliveries and rapidly grow quantities of live shrimp sales in 2022. Responding to the customer feedback we will investigate developing a strategy to deliver live shrimp sales based on size; this will allow an increase in price of over $1 per pound. Gulf Seafood is excited to continue to support NaturalShrimp with live shrimp sales in the future, especially with the future expansion into Las Vegas and Florida. It has been refreshing to work with outstanding industry professionals and NaturalShrimp’s farm raised shrimp which offers consistent quality control and scalability."
NaturalShrimp, Inc. is a publicly traded aquaculture company, headquartered in Dallas, with production facilities located near San Antonio, Texas and Webster City, Iowa. The Company has developed the first commercially viable system for growing shrimp in enclosed, salt-water systems, using patented technology to produce fresh, never frozen, naturally grown shrimp, without the use of antibiotics or toxic chemicals. NaturalShrimp systems can be located anywhere in the world to produce gourmet-grade Pacific white shrimp. For more information visit www.naturalshrimp.com.
This press release contains includes a number of forward-looking statements that reflect management’s current views with respect to future events and financial performance. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements include statements regarding the intent, belief or current expectations of us and members of our management team, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks set forth in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021, any of which may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in our forward-looking statements.
Investor Relations Contact
Executive Vice President
MZ North America
Released December 29, 2021