NaturalShrimp Incorporated (OTC:SHMP) Stock Soars 48%: Here is Why
There were a number of stocks that had started the week off with a bang and one of those was NaturalShrimp Incorporated (OTC:SHMP), which ended up with gains of as much as 48% for the day. While there was no fresh news about the company yesterday, the optimism about the stock was palpable, and it may be a good move for investors to consider taking a look at some of the recent developments to get a better idea about the company’s trajectory.
NaturalShrimp is a biotech aquaculture company that is credited with having developed and then won a patent for the first shrimp-specific Recirculating Aquaculture System (RAS). On July 27, the company announced that the previously announced merger agreement with Yotta Corporation and its fully owned subsidiary unit, Yotta Merger Sub Inc., had been terminated.
The move to terminate the transaction had been brought about by the inability of Yotta to be in compliance with the Amended and Restated Certificate of Incorporation. That prohibited Yotta from consummating the business merger until it had tangible assets of no less than $500,000.
That was a part of the merger agreement as well, and hence, it was an impossibility for NaturalShrimp to go ahead with the transaction in light of the development. The Chief Financial Officer and Treasurer of the company, William Delgado, spoke about the situation as well. He noted that the breakdown of the transaction was a disappointment since NaturalShrimp had worked on it for around 12 months.
However, it seemed that all was not lost. Delgado went on to note that the company was in talks with another entity that would include a re-IPO and a capital raise in the $10 million to $12 million range. He went on to note that the opportunity also had the full backing of the company’s advisors, management, and investment banking team. The timing of the execution of the re-IPO would decide if there was an uplisting or not. He stated that the expected time for the uplist remained from the end of next month to the beginning of October.
On June 8, the company announced that it had inked a licensing agreement with the firm Niterra Co. Ltd. for the use of its patented shrimp growing technologies. In this regard, it ought to be noted that Niterra is the leading global manufacturer of spark plugs for effectively all small engine, motorcycle, marine, and automotive applications. However, the company is also involved in developing sensor-powered RAS.
Niterra also operates and owns a research facility that is solely focused on advancing practices and techniques related to shrimp cultivation. Hence, the licensing deal with NaturalShrimp was perhaps a natural progression. As per the provisions of the agreement, the company would provide Niterra with access to its technologies for the purpose of testing the viability and suitability of its patented technology in small-scale aquaculture firms for shrimp cultivation. Both NaturalShrimp and Niterra believe that the trial could be the foundation for future collaborations.
