A Dallas-based company looking to bring fresh farmed shrimp to restaurants and consumers across the U.S. is set to uplist onto the Nasdaq Capital Market.

Via a merger with a wholly owned subsidiary of New York-based black check company Yotta Acquisition Corporation, NaturalShrimp is expected to move from the OTC markets to the Nasdaq. The move is expected to help NaturalShrimp ramp up its go-to-market efforts.

“This business combination with Yotta has the potential to significantly accelerate our efforts for commercialization and the ramp up of production of our fresh, land-based gourmet-grade shrimp at the largest indoor farming facilities in the U.S.,” Gerald Easterling, CEO of NaturalShrimp, said in a statement.

Deal gives NaturalShrimp access to $105M

Photo: NaturalShrimp

As part of the deal, the combined company—which will take on the name NaturalShrimp—could have access to up to $105 million in net cash from the Yotta trust account, assuming there are no redemptions by Yotta stockholders. In addition, Yotta plans to issue common shares to NaturalShrimp security holders worth $175 million at their current valuation, with NaturalShrimp stockholders receiving additional shares worth a total of $100 million if the company hits certain revenue targets in 2024 and 2025.

Upon the deal’s closing, expected in the first quarter of next year, NaturalShrimp will have an enterprise value estimated at around $275 million. Following the close, the company’s board will be made up of seven members chosen by NaturalShrimp.

“We believe NaturalShrimp’s patented technologies, attractive business model and unit economics provides a premium pricing opportunity for fresh, locally grown product that is of superior quality and sustainable,” Hui Chen, Yotta CEO, said in a statement. “We further believe that NaturalShrimp is well positioned to become a premier provider of shrimp in the U.S.”

Company currently operates facilities in Texas, Florida

NaturalShrimp began its R&D efforts for its commercial-level recirculating aquaculture system for farm-raising Pacific white shrimp in 2001. Using proprietary technology that helps to automate the maintenance of oxygen levels, salinity, and temperature, the company says it can produce a “crop” of shrimp weekly.

The company currently operates a 40,000-square-foot shrimp production facility outside of San Antonio and another in Webster City, Iowa. NaturalShrimp is also developing a 180,000-square-foot facility in Florida that it says will serve as a model when constructing future projects.

‘Fast track’ to expansion

While the company says it has yet to see “any significant” revenue, it’s hoping the SPAC deal will provide it with the capital to “rapidly build market share” and put it on the “fast track to roll out across the 10 largest population centers in the U.S.,” including in Nevada and the Northeast. The company is also set to launch an online retail store and home delivery program next month. To help with that effort, NaturalShrimp said it’s nearing completion on a distribution center in North Texas, which will enable it to “process thousands of pounds of shrimp.”

“We also expect that the merger will provide us with additional capital to advance facility expansion efforts in strategic markets in the U.S.,” Easterling said. “Our goal is to rapidly build market share in the supply-constrained, premium segment of the market…utilizing our propriety, proven, and scalable technologies and production system.”

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