Edible Garden Strengthens Balance Sheet and Expands R&D Through $12 Million Acquisition of Sustainable Farming Assets of NaturalShrimp Farms Inc.

Rhea-AI Summary

Edible Garden (NASDAQ: EDBL) has acquired sustainable farming assets from NaturalShrimp Farms for $12 million in preferred stock. The acquisition includes a fully operational shrimp farming facility in Fort Dodge, Iowa, and two patents for environmentally friendly water treatment technologies. Additionally, a NaturalShrimp affiliate is investing $3.5 million in preferred stock, with $3 million funded immediately. The strategic acquisition aims to expand Edible Garden's R&D capabilities and enhance its controlled environment agriculture operations. The company's recent achievements include successful nanobubble irrigation trials showing up to 55% increase in crop yield and 30% reduction in harvest cycle duration. Edible Garden has also earned "Giga-Guru" status in Walmart's Project Gigaton initiative and was recognized among the Top 50 companies in the 2024 FoodTech 500.

Positive

• Acquisition of two innovative patents for water treatment technologies that can improve agricultural efficiency
• Strengthening of balance sheet with $3 million immediate cash injection without additional debt
• Strategic expansion into Midwest with new facility for R&D and warehousing
• Demonstrated success in nanobubble technology with 55% crop yield increase and 30% harvest cycle reduction
• Recognition as Walmart's Giga-Guru and Top 50 in FoodTech 500

Negative

• Significant dilution through $15.5 million in new preferred stock issuance
• Integration risks associated with incorporating new technology and facility

Insights

Financial Analyst

Edible Garden significantly strengthens its balance sheet and R&D capabilities through a strategic $12M asset acquisition, improving capital structure without new debt.

Edible Garden has executed a $12 million acquisition of sustainable farming assets from NaturalShrimp Farms, structuring the deal entirely through preferred stock rather than cash or debt. This transaction is complemented by a $3.5 million preferred stock investment from a NaturalShrimp affiliate, with $3 million funded immediately, bringing the total investment to $15.5 million.

This deal significantly strengthens Edible Garden's balance sheet in two critical ways. First, it increases shareholder equity through the preferred stock structure, enhancing the company's capital position without diluting common shareholders immediately. Second, it adds $3 million in cash, improving liquidity without additional debt obligations.

The acquisition includes patented water treatment technology and a fully operational shrimp farming facility in Iowa. These assets have strategic value beyond their purchase price as they provide infrastructure for expanded R&D capabilities and additional Midwest warehousing capacity. The water treatment patents could potentially be integrated across Edible Garden's existing controlled environment agriculture operations, potentially improving operational efficiency.

This move aligns with Edible Garden's position in the high-growth sustainable agriculture sector and builds upon their existing technological initiatives, including nanobubble research that has reportedly increased crop yields by up to 55% while reducing harvest cycle duration by 30%. The deal structure demonstrates financial discipline, as the company secured both technology assets and capital infusion without taking on additional debt, which is especially important in the current high interest rate environment.

The strategic Midwest facility acquisition potentially creates operational synergies through reduced transportation costs and improved distribution capabilities for Edible Garden's products, particularly with key retail partners like Walmart.

Acquisition Adds Patented Water Treatment Technology with Expected Broad Cross- Platform Applications; Increases Shareholder Equity Through Preferred Stock Structure

Transaction Strengthens Edible Garden’s Balance Sheet with $3 Million of Cash Through Private Placement

Intended to Enhance Vertically Integrated Model and Advance Zero-Waste Inspired® Mission in High-Growth, Sustainable Agriculture Sector

Strengthens Edible Garden’s Leadership in Sustainability and Controlled Environment Agriculture

BELVIDERE, N.J., May 14, 2025 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products, today announced the acquisition of certain assets of a sustainable aquaculture company based in Fort Dodge, Iowa, from NaturalShrimp Farms Inc. (“NaturalShrimp”). Edible Garden purchased the NaturalShrimp assets in exchange for $12 million of a new class of the Company’s preferred stock. In addition, an affiliate of NaturalShrimp, agreed to purchase $3.5 million of the Company’s preferred stock for cash, of which $3 million is being funded immediately, bringing its total investment in the Company’s preferred stock to $15.5 million. As part of the acquisition, Edible Garden will gain two innovative patents for environmentally friendly water treatment technologies, along with a fully operational shrimp farming facility.

The acquisition is expected to support multiple strategic initiatives at Edible Garden, including expanded R&D and warehousing. The Company intends to integrate the patented water treatment technology across its existing CEA operations, opening new possibilities for improving agricultural efficiency and sustainability. This development aligns with Edible Garden’s Zero-Waste Inspired® mission and enhances the Company’s vertically integrated model.

“This acquisition marks another exciting milestone in Edible Garden’s evolution as a leader in sustainable agriculture,” said Jim Kras, Chief Executive Officer of Edible Garden. “By purchasing the assets of NaturalShrimp, we are not only gaining a highly innovative, sustainable aquaculture facility, but also acquiring patented water treatment technologies that can be deployed across our greenhouse operations. These innovations have the potential to optimize water use and reduce environmental impact—benefiting both our operations and the planet. It is a strategic fit that builds on everything we have been doing, from nanobubble research to our work with the EPA and FDA and now positions us to expand our R&D capabilities and potentially enhance our nutraceutical product development.”

“This transaction significantly strengthens our balance sheet—without the need for additional debt—and increases shareholder equity, underscoring our commitment to a capital-efficient growth strategy. We believe the Iowa facility provides a scalable platform for advanced research, expanded herb production, and strategic warehousing in the Midwest, further reinforcing Edible Garden’s position as a leader in sustainable food production.”

Maxim Group LLC served as the exclusive financial advisor to Edible Garden in connection with this acquisition.

Edible Garden’s commitment to agricultural innovation and sustainability is reflected in its ongoing collaborations with leading organizations such as the EPA, FDA, New Jersey Institute of Technology (NJIT), and the Brisea Group. These partnerships have yielded promising results, including nanobubble irrigation trials that demonstrated up to a 55% increase in crop yield and a 30% reduction in harvest cycle duration. Complementing these efforts is the Company’s expanding relationship with Walmart and its participation in the retailer’s ambitious Project Gigaton initiative, which aims to eliminate one billion metric tons of emissions from the global supply chain by 2030. In recognition of its leadership, Edible Garden has earned the designation of “Giga-Guru,” a recognition awarded to top-performing suppliers demonstrating exceptional leadership in sustainability. Further highlighting its innovation and impact at the intersection of food, technology, and sustainability, Edible Garden was recently named a Top 50 company in the 2024 FoodTech 500 by Forward Fooding.

Additional information regarding the terms of the private placement will be available in the Company’s Current Report on Form 8-K regarding this transaction, which will be filed with the Securities and Exchange Commission.

ABOUT EDIBLE GARDEN®

Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products backed by Zero-Waste Inspired^® next generation farming. Offered at over 5,000 stores in the US, Caribbean and South America, Edible Garden is disrupting the CEA and sustainability technology movement with its safety-in-farming protocols, use of sustainable packaging, patented GreenThumb software and Self-Watering in-store displays. The Company currently operates its own state-of-the-art vertically integrated greenhouses and processing facilities in Belvidere, New Jersey and Grand Rapids, Michigan, and has a network of contract growers, all strategically located near major markets in the U.S. Its proprietary GreenThumb 2.0 patented (US Nos.: US 11,158,006 B1, US 11,410,249 B2 and US 11,830, 088 B2) software optimizes growing in vertical and traditional greenhouses while seeking to reduce pollution-generating food miles. Its proprietary patented (U.S. Patent No. D1,010,365) Self-Watering display is designed to increase plant shelf life and provide an enhanced in-store plant display experience. The Company has been named a FoodTech 500 company by Forward Fooding, a leading AgriFoodTech organization. In addition, Edible Garden is also a Giga Guru member of Walmart's Project Gigaton sustainability initiative. Edible Garden is also a developer of ingredients and proteins, providing an accessible line of plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands. In addition, the Company’s Kick. Sports Nutrition line features premium performance products that cater to today’s health-conscious athletes looking for cleaner labeled, better for you options. Furthermore, Edible Garden offers a line of fresh, sustainable and functional condiments such as Pulp fermented gourmet & chili-based sauces and Edible Garden's Pickle Party - fresh pickles & krauts. For more information on Pulp products go to https://www.pulpflavors.com. For more information on Vitamin Whey® products go to https://vitaminwhey.com. For more information on Edible Garden go to https://ediblegardenag.com.

Forward-Looking Statements

This press release contains forward-looking statements, including with respect to the Company’s ability to integrate, develop, and operate the assets of NaturalShrimp, the Company’s growth strategies, and performance as a public company. The words “believe,” “can,” “expect,” “intend,” “potential,” “seek,” “strategy,” “will,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company’s ability to achieve its growth objectives. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.

Investor Contacts:
Crescendo Communications, LLC
212-671-1020
EDBL@crescendo-ir.com

FAQ

What did Edible Garden (EDBL) acquire from NaturalShrimp Farms?

Edible Garden acquired sustainable farming assets from NaturalShrimp Farms, including a shrimp farming facility in Fort Dodge, Iowa, and two patents for water treatment technologies, for $12 million in preferred stock.

How much is the total investment in preferred stock received by Edible Garden (EDBL)?

The total investment in preferred stock is $15.5 million, comprising $12 million for the NaturalShrimp assets and an additional $3.5 million investment from a NaturalShrimp affiliate.

What are the key benefits of Edible Garden's NaturalShrimp acquisition?

The acquisition provides patented water treatment technologies, expands R&D capabilities, adds a Midwest facility for operations, and strengthens the balance sheet with $3 million in immediate cash funding.

What recent achievements has Edible Garden (EDBL) demonstrated in agricultural technology?

Edible Garden has achieved up to 55% increase in crop yield and 30% reduction in harvest cycle duration through nanobubble irrigation trials, and earned recognition as a Walmart Giga-Guru and Top 50 FoodTech 500 company.

How is Edible Garden (EDBL) financing the NaturalShrimp acquisition?

The acquisition is financed through the issuance of $12 million in preferred stock, with an additional $3.5 million preferred stock investment from a NaturalShrimp affiliate, avoiding the need for additional debt.