NaturalShrimp Incorporated (OTCMKTS:SHMP) Stock Turns Volatile: But Why?
There are a number of interesting companies that may well be worth tracking at this point in time and one of those is NaturalShrimp Incorporated (OTCMKTS:SHMP). It is a biotech aquaculture firm that has been successful in developing and then patenting its own shrimp-related commercially viable Recirculating Aquaculture system, or RAS.
On July 27, the company was in the news after it announced that it had canceled its merger agreement with Yotta Acquisition Corporation and its subsidiary unit, Yotta Merger Sub Inc. The company had previously made an announcement about the potential acquisition.
It was announced by NaturalShrimp that the transaction had been canceled owing to the inability of Yotta to abide by the provisions in its own Amended and Restated Certificate of Incorporation. As per those provisions, Yotta was prohibited from going for a business combination unless it had net tangible assets of a minimum of $5000001 following the consummation of such a business merger.
The transaction that had been earmarked in the Merger Agreement made it impossible for Yotta to fulfill the conditions and, by extension, consummate such a transaction. The Chief Financial Officer and Treasurer at NaturalShrimp, William Delgado, spoke about the situation. He expressed his disappointment at the fact that the deal had to be terminated after having worked on it for 12 months.
However, he stated that the company was in talks with another entity that will see a RE-IPO and also a capital raise in the $10 million to $12 million range. He went on to add that the management, investment banking team, and advisors of NaturalShrimp were fully supportive of the potential transaction. If the RE-IPO is completed at the desired time, then it would lead to an uplisting as well, Delgado noted.
However, there had been another significant development that investors ought to be aware of. On July 8, NaturalShrimp announced that it had inked a licensing agreement with Niterra Co., Ltd. As per the terms of the agreement, Niterra would be able to use the company’s patented shrimp-growing technologies on a trial basis.
It should be noted that Niterra is a global leader in the manufacturing of spark plugs for essentially any automotive, marine, motorcycle, or small engine machine. The company’s business unit, Niterra Ventures Limited, is involved in scouting for opportunities in a range of other business sectors to boost revenues. Some of the sectors it is interested in include medicine, environment, mobility, energy, and food.
The company is mainly interested in bringing about meaningful growth through investments, internal developments, collaborations, and partnerships. Niterra Ventures made it a mission to develop sensor-powered RAS, and in fact, the company also owns and operates a research facility for this particular purpose. The research facility in question is focused on bringing about advancements in practices and techniques in the field of shrimp cultivation. The companies agreed that the trial period would serve as a foundation on which any future collaborations would be based.
