NaturalShrimp Issues Shareholder Letter and Provides Corporate Update
DALLAS, TX, Feb. 24, 2022 (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 issued a letter to shareholders from Gerald Easterling, CEO of NaturalShrimp.
NaturalShrimp’s 2021 year in review has been both challenging and amazing as we and our suppliers continue to deal with COVID supply issues. Our vision to produce fresh, land-based gourmet-grade shrimp without the use of antibiotics, probiotics or toxic chemicals has never wavered, advancing from a Texas shrimp company to a now worldwide biotechnology-based company. Today we have built the largest US shrimp indoor Recirculating Aquaculture System using our patented platform technologies.
Less than two years ago on March 18, 2020, at the onset of the COVID-19 pandemic, the Company experienced a fire that decimated our LaCoste facility, and the concern was that we might lose our business. From that point on we promised that our company would literally “rise from the ashes,” and today I am proud to say our management team has not only accomplished this mission but exceeded all expectations in doing so.
To demonstrate how far we have come over this time, we have raised over $50 million from the date of March 2020 fire. On our 10-Q filed for March 31, 2020, Total Assets listed on the balance sheet was $2.3 million, including the fire insurance settlement. Nine months later, at December 31, 2020, we had raised the Total Assets line item to over $15.0 million, providing the necessary capital to negotiate the acquisition of the former VeroBlue operations located in Webster City, Iowa. One year later, as stated on the December 31, 2021 10-Q, we raised the Total Assets line item to over $41.0 million, providing the necessary capital to negotiate the acquisition of the technology rights of Hydrenesis Aquaculture. Additionally, the capital was raised for the acquisition of the F&T Water Solutions LLC patented technologies and the acquisition of NaturalAquatic Systems, Inc. (NAS). Throughout this period of capital and acquisition growth we have continued to focus on the commercialization of our farm-to-table sushi grade shrimp and fresh seafood.
We have materially completed the conversion process of Convertible Preferred A shares from NaturalShrimp Holdings, Inc. to NaturalShrimp, Inc., either through issuance of shares or reserve of shares. We have executed agreements for approximately 70% of those total shares issued that are subject to the leak-out and lock-out provisions. The Series A Preferred will be retired after this process is completed and prior to our uplist.
Our shrimp production is behind schedule by approximately six months from the original projection. This has been due to delays from virtually all of our suppliers including hatcheries who have suffered from a myriad of pandemic issues, including labor shortages. Even with these delays, we anticipate being back on track and cash flow positive by the fourth quarter of 2022.
Our partnership and beta test with Gulf Seafood, Inc. shipping live shrimp from its Webster City location has proven this market has an untapped opportunity for NaturalShrimp and Gulf Seafood. Both companies have agreed to expand market opportunities to other areas of the US including Texas and our future Las Vegas facility.
Under our subsidiary, Natural Aquatic Systems, Inc. we are continuing our research with Marineholmen RASLab to evaluate the effects of using Hydrogas technology to increase fish health in a Recirculating Aquaculture System. We expect to prove our technologies will increase the health and survival rates in early salmon growth periods.
Looking ahead into 2022, we have filed an application to uplist from the OTCBQB to the NASDAQ on or before April 15, 2022 to help elevate the Company's public profile, expand our shareholder base, improve liquidity and enhance shareholder value.
We expect any capital raises going forward will be used for expansion. We will begin construction of a new shrimp production building in La Coste, TX in the second quarter of 2022. The new 80,000 square foot building will be approximately twice the size of the current existing production building of 40,000 square feet, enabling us to effectively triple the shrimp production output in Texas. In Iowa, we will begin the retrofit of the entire Webster City shrimp production facility based on the successful integration of our technology in a portion of the facility. Future expansion plans will also include the Blairsburg and Buckeye facilities in Iowa.
Our planned inland shrimp production facility of up to 250,000 square feet in Jefferson County Florida is moving along our development timeline. We have partnered with the Jefferson County, Florida Board of County Commissioners to lease or convey a ten-acre tract of land for the development of the facility in Florida, and to help to identify and pursue up to $25 million in available funding grants.
We also intend to expand into Las Vegas, Nevada to serve additional markets and increase geographic reach to the West Coast. A 480,000 square foot mega shrimp production facility is in the early planning stage and construction is expected to begin in the fourth calendar quarter of 2022.
Our commercial partnership with Gulf Seafood will continue through at least the remainder of the first quarter of 2022, after which we hope to have a long-term arrangement to drive its continued success into additional markets and greater penetration in existing markets.
We have continued negotiations with a Salmon producer on a license of the NSI technology, specifically around the technology from our most recent acquisition, the technology rights of Hydrenesis Aquaculture. We have been approached by several groups regarding licensing of our technology. We will entertain license opportunities in all areas of aquaculture except for the production of shrimp.
We thank all of our shareholders for being patient and supportive of the Company’s short term and long-term plans as we move through 2022. We are firmly convinced that we will enjoy an increased shareholder value into 2023.
CEO of NaturalShrimp
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 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.
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Released February 24, 2022