NaturalShrimp finalizes acquisition, begins stocking shrimp at Iowa facility
Dallas, Texas, U.S.-based NaturalShrimp has announced the acquisition of assets of F&T Water Solutions, LLC.
The USD 10 million (EUR 8.1 million) purchase includes 49 percent of Natural Aquatic Systems owned by F&T, in addition to patents on the electro-coagulation system and the associated equipment and processes owned 50 percent and 100 percent by F&T, respectively.
“This acquisition represents the final phase of our joint development of the electro-coagulation (EC) technology begun by F&T Water Solutions and its former president, Peter Letizia,” NaturalShrimp CEO Gerald Easterling. “We now own and control this EC technology as it relates to all aquaculture species and applications. We plan to utilize this technology in all of our shrimp-growing operations and to license to other aquaculture ventures worldwide.”
NaturalShrimp announced earlier in May that it had purchased 20 electro-coagulation units and associated equipment for USD 2 million (EUR 1.6 million), which the company will install at its plants in LaCoste, Texas and Webster City, Iowa. Those purchase, Easterling said, will be the last of the equipment needed to begin production at the two plants.
“These units, manufactured in the U.S.A., will bring the EC equipment requirements to 100 percent at both facilities,” he said. “We will require an additional 16 EC units once expansion construction is complete in LaCoste, Texas.”
The purchases come after NaturalShrimp announced it had closed an initial USD 13.5 million (EUR 11 million) registered direct offering of 24,545,455 shares of the company’s common stock. The company said it used the proceed to “satisfy debts primarily associated with its previously announced purchase of the assets of Vero Blue Farms owned by Alder Aqua, in Webster City, Iowa.”
During the process, the 20 of the company’s 120 500-gallon tanks in its nursery facility in Webster City, Iowa were stocked with post-larvae shrimp. The post-larvaes were shipped 20 miles from the company’s Blairsburg, Iowa-based plant to the grow-out tanks in Webster City, which the company said proves its “production plans around utilization of the three facilities in the Iowa triangle.”
“The smaller nursery tanks provide a more controlled environment for acclimating the initial post-larvae shrimp to the facility’s water temperature and salinity while still providing enough volume for the smaller shrimp to grow,” the company said.
In an interview with the Stock Day Podcast, Easterling said the company has further plans to expand in Florida.
"We have a joint venture in Florida with Hydrenesis Aquaculture, LLC, and we're moving through the presentations. It looks like we couldreceive funding commitments somewhere in the third quarter for about a USD 25 million [EUR 20.4 million] project," shared Easterling. "It's very positive and it looks like we are on target to get there."
Photo courtesy of NaturalShrimp