Nearly three months after a fire destroyed its production facility, NaturalShrimp, Inc. has announced plans to rebuild in its hometown.
In a letter to shareholders on Wednesday, 3 June, the company said it is committed to invest USD 2.5 million (EUR 2.2 million) to rebuild in LaCoste, Texas, roughly 20 miles southwest of San Antonio. A fire at its facility there on 17 March affected tanks that the company uses to grow food-grade shrimp through a patented aquaculture process.
“This event did not destroy our technology or the tremendous business opportunity it provides,” the letter stated. “It simply delayed our timeline.”
While the company is still waiting to receive the final report from the state fire marshal, the company did announce that it settled the case with its insurance company and will get more than USD 917,000 (EUR 811,881) for its full claim. NaturalShrimp (OTCQB: SHMP) has more than USD 1.5 million (EUR 1.3 million) in cash on hand and USD 2 million (EUR 1.8 million) more available through an equity investment made GHS LLC that would complete its USD 5 million (EUR 4.4 million) investment in the company.
Over the last 10 weeks company officials said they were examining various ways to move the company forward, and that process led to two options. One was an existing aquaculture facility, the location which the company did not disclose, where company officials sought to acquire its assets. Despite multiple attempts over the last two months, NaturalShrimp could not reach terms that made the deal viable.
As they were trying that route, they also worked on a plan to rebuild in LaCoste, with Chief Operating Officer/Chief Technology Officer Tom Untermeyer leading its implementation.
“Let us assure all shareholders that management is committed to rebuild and evaluate our technology expansion opportunities throughout 2020 and beyond,” the company wrote.
Photo courtesy of NaturalShrimp
