Dallas, Texas, U.S.A.-based NaturalShrimp has closed on its acquisition of Hydrenesis Aquaculture, a developer and implementer of water treatment technology.
The transaction was first announced in February 2021, and in a 26 August press release, NaturalShrimp confirmed the price of USD 12.5 million (EUR 10.4 million), consisting of USD 4 million (EUR 3.2 million) in cash and the remainder paid in NaturalShrimp stock, including a stock consideration payment at a price of USD 0.505 (EUR 0.43) per share, a premium over the stock’s current price of USD 0.40 (EUR 0.34). Originally, NaturalShrimp had said it would pay USD 5.5 million (EUR 4.5 milllion) in cash and USD 7 million (EUR 5.7 million) in NaturalShrimp stock.
“The acquisition is expected to act as a major growth driver for NaturalShrimp, opening the door for expansion of our platform technologies into additional worldwide seafood markets, including salmon, barramundi, and other freshwater fish,” NaturalShrimp CEO Gerald Easterling said. “As long-term partners with Hydrenesis, we can immediately begin integration and deployment of the technology in our shrimp hatchery and nursery systems without interruption, and the acquisition is expected to be accretive to operations and earnings in fiscal year 2022.
NaturalShrimp operates a recirculating aquaculture system land-based shrimp farm in Texas employing its unique electrocoagulation technology to allow for higher-density shrimp aquaculture.
In May 2021, it announced it had purchased the assets of F&T Water Solutions for USD 10 million (EUR 8.1 million). It also said it stocked 20 of the company’s 120 500-gallon tanks in its nursery facility in Webster City, Iowa, in the former Vero Blue Farms facility owned by Alder Aqua, which it purchased in August 2020. In January, announced a partnership with Pompano Beach, Florida, U.S.A.-based Hydrenesis to build a USD 25 million (EUR 20.4 million) RAS shrimp farm in northern Florida. NaturalShrimp said Hydrenesis’ “redox” water-treatment technologies “have the ability to affect water chemistry and elevate water quality, and they are proving to be critical technologies for scaling hatchery and nursery systems and impacting growth and health metrics.”
“Extending commercialization of Hydrenesis technologies to additional species applications expands our addressable markets into the USD 17 billion [EUR 14.5 billion] global salmon market and other farmed freshwater fish,” Easterling said. “Demand for barramundi and tilapia continues to increase in the U.S., China, and other countries as consumers seek unique and sustainable fish options. The technology also expands our licensing opportunities, and we expect to file additional patents around the expansion of the application and use of the combined EC and Hydrenesis technology. Integrating Hydrenesis technology into our patented proprietary technologies will further advance our growth strategy and drive long-term value creation for our shareholders.”
Photo courtesy of NaturalShrimp
