Proceeds to be Used to Expand Production in Texas and Iowa
Pays Renegotiated Balance of Iowa Facility Note
DALLAS, TX, Dec. 28, 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 that on December 15, 2021 the Company sold a 12% Secured Promissory Note (the “Note”) in a private placement offering to Streeterville Capital, LLC in the aggregate principal amount of $16,320,000, before deducting placement agent fees and expenses equal to approximately $1,320,000 (the “Offering”). Joseph Gunnar & Co., LLC served as exclusive placement agent for the Offering. The Company intends to use the net proceeds from the Offering to expand production facilities in Texas and Iowa and has paid the balance of a $5.0 million note for its Iowa facilities that was negotiated to $4.5 million.
The Note has a stated maturity date of 24 months from the date of issuance, and bear interest at a rate of 12% per annum, payable monthly commencing on May 1, 2022. Interest is payable in cash or shares of the Company’s common stock. Additional details regarding the securities purchase agreement will be included in a Form 8-K to be filed by NaturalShrimp with the Securities and Exchange Commission (the “SEC”).
“We are pleased to partner with Streeterville on this transaction to provide us additional flexibility and capital as we continue to scale our natural live shrimp production," said Gerald Easterling, CEO of NaturalShrimp. “With our first commercial deliveries in November, we are positioning the Company for expansion as we enter the new year and intend to use proceeds to add production capacity at our facilities. We also used a portion of the proceeds to pay off the balance of a previous $5.0 million note, negotiating to save $0.5 million. This purchase agreement is also being made in conjunction with our efforts to up-list shares to a major exchange in 2022, and I look forward to sharing additional announcements in the coming months.”
About 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.
Forward-Looking Statements
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
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
SHMP@mzgroup.us
