NaturalShrimp, Inc. Closes $3,000,000 Registered Direct Offering
Rhea-AI Summary
NaturalShrimp, Inc. (OTCQB: SHMP) has successfully closed a registered direct offering of 7,500,000 shares, raising $3,000,000 at a fixed price of $0.40 per share. This offering increases the total capital raised under the current shelf registration to $18 million, with an average share price of $0.525. The funds will be allocated towards previously announced letters of intent and expansion initiatives at the Iowa facility. The securities offered include warrants for 1,100,000 shares at an exercise price of $0.01, with effective registration filed with the SEC.
Positive
- Raised $3 million through the offering to support growth and expansion efforts.
- Total capital raised under shelf registration increased to $18 million, indicating strong financial backing.
Negative
- The share price of $0.40 per share is below the average price of $0.525, indicating potential market concerns.
- Dilution risk for existing shareholders due to the large number of shares issued.
News Market Reaction
On the day this news was published, SHMP declined 6.59%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Dallas, Texas, June 29, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- NaturalShrimp, Inc. (OTCQB: SHMP), a Biotechnology Aquaculture Company that has developed and patented the first shrimp-focused commercially operational RAS (Recirculating Aquaculture System), announced today that it has closed a registered direct offering of 7,500,000 shares of the Company’s common stock for gross proceeds of
The Company intends to use the proceeds in connection with transactions related to previously announced letters of intent and plant expansions and retrofits at its NaturalShrimp Iowa location.
The securities (including warrants to purchase 1,100,000 shares of common stock at an exercise price of
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
About NaturalShrimp
NaturalShrimp, Inc. is a publicly traded aquaculture Company, headquartered in Dallas, with production facilities located near San Antonio, Texas and Webster City, Iowa. The Company has developed the first commercially viable system for growing shrimp in enclosed, salt-water systems, using patented technology to produce fresh, never frozen, naturally grown shrimp, without the use of antibiotics or toxic chemicals. NaturalShrimp systems can be located anywhere in the world to produce gourmet-grade Pacific white shrimp. For more information visit www.naturalshrimp.com.
Forward Looking Statements
This press release contains "forward-looking statements." The statements contained in this press release that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control and could cause the Company's results to differ materially from those described. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These statements include statements regarding moving forward with executing the Company's global growth strategy. The statements are based upon current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict. The Company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, except as required by law. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Important factors that could cause such differences include but are not limited to the Risk Factors and other information set forth in the Company's Annual Report on Form 10-K filed on June 26, 2020, and in our other filings with the U.S. Securities and Exchange Commission.
Investor Relations Contact
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
SHMP@mzgroup.us
www.mzgroup.us
FAQ
What were the details of NaturalShrimp's recent stock offering?
How will the proceeds from the stock offering be used?
What is the total amount raised by NaturalShrimp under the current shelf registration?
What are the potential risks for shareholders following the offering?
