What Drove NaturalShrimp (SHMP) Stock Up 37% On Monday?

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Yesterday’s closing price of $0.4520 for NaturalShrimp Inc (OTCQB:SHMP) was up 36.93%. SHMP stock had a volume of 6.79M, compared to its average weekly volume of 2.22M. Following the letter to shareholders, SHMP’s stock price rocketed.

What has SHMP shared with the shareholders?

Located near San Antonio, Texas and Webster City, Iowa, NaturalShrimp is a publicly traded aquaculture company with headquarters in Dallas. A patented technology by SHMP has been created to produce fresh, never frozen, naturally grown shrimp without antibiotics or dyes, without the use of toxic chemicals. This is the world’s first commercially viable system for growing shrimp in enclosed, salt-water systems. Gourmet-quality Pacific white shrimp can be produced with SHMP systems anywhere in the world.

Chief Executive Officer Gerald Easterling has sent a letter to shareholders on behalf of NaturalShrimp.

Highlights of the shareholder letter include:

  • In the Tampa/St. Petersburg in Petersburg, Florida region SHMP Distribution Agreement is being finalized with a distributor.
  • The shrimp will be sold in various sizes and at a price of $10/lb.
  • Separate press releases will be issued shortly regarding the agreement.
  • SHMP is estimating sales of $300,000 to $500,000 for the December 2021 quarter.
  • Shrimp are now being stocked and grown in Webster City barns on a weekly basis in preparation for harvesting on a weekly basis.
  • SHMP is in the process of retrofitting the remaining four barns after the first has successfully been retrofitted with the patented filtration equipment.
  • By the second calendar quarter of 2022, the factory’s retrofitted capacity will be 9,000 pounds per week.
  • Several upgrades are being carried out at the plant in LaCoste to reach full capacity.
  • SHMP expects to generate sales from LaCoste in this quarter as well.
  • It is expected that SHMP will ramp up full production of 3,000 pounds per week by the end of the first quarter of 2022, as it has experienced delays resulting from Covid’s supply chain issues.
  • Additionally, SHMP expects to break ground within 60 days on an expansion in LaCoste that will add 80,000 square feet.
  • The SHMP is actively negotiating with a Salmon producer regarding a license of NSI technology, namely from the technology acquired from its recent acquisition, Hydrensis.
  • Except for shrimp production, SHMP will consider license opportunities across all areas of aquaculture.
  • Around November 15, 2021, SHMP expects to conclude its last administrative task concerning the uplist.
  • SHMP hopes to become NASDAQ-listed within the next 90 days, depending on NASDAQ schedule.
  • In regards to institutional ownership and research coverage, this uplist is very important because SHMP will be in a position to attract institutional ownership.

SHMP’s financial situation:

Without the value of the intellectual property (IP), NaturalShrimp (SHMP) has about $17 million in assets. According to SHMP, Webster City’s facilities are currently valued at $10M, however they are worth approximately $50M if they were replaced. Webster City facilities secure approximately $5M in debt for SHMP. SHMP expects to make money from licensing and sales agreements between the first and second quarters of calendar 2022.

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