NaturalShrimp eyes expansion after securing US $15 million
Dallas, Texas-based shrimp producer NaturalShrimp reported that it has secured US $15 million in credit offering and now intends to move forward with plans to expand its shrimp production facilities.
Earlier this week, NaturalShrimp reported that it sold a 12 per cent secured promissory note in a private placement offering to Streeterville Capital for US $16.32 million, before fees and expenses of US $1.32 million.
The company will use the proceeds to expand its production facilities in Texas and Iowa. NaturalShrimp also said it has paid the balance of a US $5 million note for its Iowa facility that was negotiated to US $4.5 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,” said Gerald Easterling, chief executive officer of NaturalShrimp.
Easterling also said that NaturalShrimp will continue to ramp up deliveries of live shrimp to Gulf Seafood Inc. (GSI).
In October 2021, NaturalShrimp, signed an agreement with GSI to provide the Florida-based food distributor 25,000 pounds of live shrimp.
“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,” said Easterling. “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.”
Increasing demand for smaller sized shrimp is expanding gross and operating profit margins for the company due to the shorter grow-out period and corresponding reduction in resources needed to reach an earlier harvest, according to a press release from NaturalShrimp.
“The shorter grow-out period of smaller sized shrimp yields gross margins that are three to four 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,” said William Delgado, chief financial officer of NaturalShrimp.