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But you can't speak a sound word on why my advice is not sound. Instead, you take the Yota people and hope the Asians are idiots because they would be giving 17 million in stock and tens of millions of dollars to a company that is in financial ruins. Asians are smart and hard core businessmen.
Oh wait, it's no longer 17 million shares. Well yeah which is why saying the deal is close to done is an obvious lie. The bankers know that even if somehow I am dead wrong, the original deal has to be restructured. And therefore, no banker has raised a dime to date.
The chance of this deal getting done is a long shot at best. In banker terms, that means pray for a miracle.
When the first quarter financials are released, it will become much clearer that 2 of my predictions will almost be even money. Loss in excess of 30 million for the year and below $1 million in revenue.
Remember the other 2. They will be selling a frozen product because fresh is a logistical nightmare. They will have to add processing to every facility that is not in the viscosity of a local processor.
I see. So you mean if I call the company, that is thorough due diligence. Thank you so much. As a person who has managed well over 500 million in my career, I learn something every day. I won't visit companies any longer and meet management teams. I'll just call and ask for the Chef. That is very sound advice. In fact, I shouldn't have called Otto Happel and asked him why he rejected the investment opportunity in SHMP. You talk to Chef Douwe. I'll stick with billionaires.
Yotta has traded very little shares since this deal was announced. That would indicate to me that the deal is not happening.
Also, why in the world would any Yotta shareholder vote yes when they are clearly in an illiquid stock.
If I was advising them, I would say vote no. And if you really believe in SHMP stock, simply buy in to SHMP at a $10-20 million dollar valuation which is where the stock will go if they vote no. I would also advise them that is a much better deal than handing SHMP shareholders $100,000,000 -- $200,000,000 in Yota stock.
And since SHMP would be in such deep financial trouble if they vote no, they could easily buy the entire company and all assets by contacting John Fife.
Finally and if they don't want to deal with John Fife, they can call Gerry who will have no choice but to sell 1/3 of the company for a $10 million check.
This is reality, not dreamland
I have a very serious question. Since the company is bleeding money, you would think they would try reduce burn.
I know what a Chef does but what exactly is our Chef's responsibility?
I'm requesting a real answer.
What I don't understand is that if the Goulding's are out, why hurt the current company and shareholders? Maybe makes you feel good
They are developing Shrimp NFT's. Each NFT holds 10 $30 shrimp. And the reason why someone would buy these is because the company says Shrimp is going to go to $40 a pound because of warm ocean waters. So if you buy those $30 shrimp now and water temperatures continue to rise, your $30 shrimp will attract a huge crowd in 2048. What is taking so long is how do you bring the shrimp back to life 25 years later. That is when the electrocoagulation equipment comes in. If we just buzz the shrimp with 80 volts of energy, they're alive. Taking a few months longer to perfect. I heard they zapped one of the bankers at Gunnar who almost bailed but they're pretty excited although one of their bankers now looks like Don King. Natural Shrimp isn't dead yet.
I have a treatment for Spac Attack. It's called tequila. Because when the Spac Fails, CNN will run a story on the Great SHMP SPAC Attack of 2024.
So wait, are you saying the 10K Is false and SHMP is not paying 2% a month. Snippet is another word for proving someone wrong in 20 words or less. I do like snippets.
Here you go chief:
As of March 31, 2023, the Merger has not yet closed, and therefore the 2% of the outstanding balance was increased as of March 31, 2023, in the amount of approximately $1,336,000.
Every month. So over the next 12 months, John FIFE as per the agreement will rack up another $16,000,000 in principal because the 2% id compounded.
The SPAC investors see that too. BTW and when the SPAC investors ask John to take $18,000,000 and walkaway, Johnny will say, "Mormons aren't stupid and your chance of beating me in a Urah Court is close to zero."
No I am not. I am using the rate for the credit lines for the banks which has nothing to do with a note.
As far as Fife's note, it says right in the 10K ttat the value of the note was increases by 1.3 million for the quarter ended 3/31 and it increases by 2% each month. The value of the note increases 2% every month
That is a fact. So the interest rate is really in excess of 30%
Right from the 10K. Those are the words in the filing. Makes a little more sense than a company that has close to zero revenues and a 9 million deficit in working capital borrowing money at 25 basis points over prime. Right? I can tell you that I know senior lenders at JP Morgan and Intel doesn't borrow at 25 basis points over prime.
I know it's east to say anything and hopefully someone believes it. I have been pretty much spot on on every statement I made.
Please name 2.
You're guess is wrong. What wouldn't be a guess or even speculation is that banks don't charge 33% on credit lines unless they believe they have beyond substantial risk. Bank doesn't believe the SPAC deal is happening. I"ll side with the banks. They evaluated the company and said this is a long shot at best.
If the SPAC DOES NOT HAPPEN, I may take a shot at 1 cent. And I didn't pick that price randomly.
Fife has no risk. WHATTTTTTTT?
Going Concern
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the year ended March 31, 2023, the Company had a net loss available for common stockholders of approximately $17,497,000. As of March 31, 2023, the Company had an accumulated deficit of approximately $167,533,000 and a working capital deficit of approximately $9,339,000. These factors raise substantial doubt about the Company’s ability to continue as a going concern, within one year from the issuance date of this filing. The Company’s ability to continue as a going concern is dependent on its ability to raise the required additional capital or debt financing to meet short and long-term operating requirements. During the year ended March 31, 2023, the Company received net cash proceeds of approximately $3,076,000 from the sale of common shares (See Note 12), and $1,715,000 proceeds from the issuance of promissory notes.
Secured by the assets of the company's subsidiaries for a $25,000 loan. Beyond LMFAO.
By the way, your asset valuation is complete BS. There is no company dumb enough in the world to pay $8 million for Latezia's patent. That is already 8 million in BS assets.
Fife has no risk but banks are charging them 33%.
Really it is fact. They are in default. They pay 18% plus 2% per month. It is in the 10K chief.
BTW and to add to your comment yesterday that Fife has no risk, here are the interest rates that they pay on tiny credit lines. BTW, the interest one pays on a loan reflects the risk that the lender believes they have.
The Company has a working capital line of credit with Capital One Bank for $50,000. The line of credit bears an interest rate of prime plus 25.9 basis points, which totaled 33.9% as of March 31, 2023. The line of credit is unsecured. The balance of the line of credit was $9,580 at both March 31, 2023 and March 31, 2022.
The Company also has a working capital line of credit with Chase Bank for $25,000. The line of credit bears an interest rate of prime plus 10 basis points, which totaled 18.0% as of March 31, 2023. The line of credit is secured by assets of the Company’s subsidiaries. The balance of the line of credit is $10,237 as of March 31, 2023 and March 31, 2022.
You do realize that someone that hasn't worked in 3 years with a credit rating of 549 can borrow money at 33.9%. So I would conclude that 2 of the largest banks in the world agree that not only is there risk but it is massive.
Right now, about $1,800,000 is added to the value of the debt owed to John Fife EVERY QUARTER. Now that is one quality financing.
The Company entered into a securities purchase agreement (the “SPA”) with an investor (the “Investor”) on December 15, 2021. Pursuant to the SPA, the Investor purchased a secured promissory note (the “Note”) in the aggregate principal amount totaling approximately $16,320,000 (the “Principal Amount”). The Note has an interest rate of 12% per annum, with a maturity date 24 months from the issuance date of the Note (the “Maturity Date”). The Note carried an original issue discount totaling $1,300,000 and a transaction expense amount of $20,000, both of which are included in the principal balance of the Note. The Note had $2,035,000 in debt issuance costs, including fees paid in cash of $1,095,000 and 3,000,000 warrants issued to placement agents with a fair value of $940,000. The warrant fair value was estimated using the Black Scholes Model, with the following inputs: the price of the Company’s common stock of $0.32; a risk-free interest rate of 1.19%, the expected volatility of the Company’s common stock of 209.9%; the estimated remaining term, a dividend rate of 0%. The warrants were classified as a liability, as it is not known if there will be sufficient authorized shares to be issued upon settlement, based on the conversion terms of the convertible debt.
Beginning on the date that is 6 months from the issuance date of the Note, the Investor has the right to redeem up to $1,000,000 of the outstanding balance per month. Payments may be made by the Company, at the Company’s option, (a) in cash, or (b) by paying the redemption amount in the form of shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), per the following formula: the number of redemption shares equals the portion of the applicable redemption amount divided by the Redemption Repayment Price. The “Redemption Repayment Price” equals 90% multiplied by the average of the two lowest volume weighted average price per share of the Common Stock during the ten (10) trading days immediately preceding the date that the Investor delivers notice electing to redeem a portion of the Note. The redemption amount shall include a premium of 15% of the portion of the outstanding balance being paid (the “Exit Fee”). As the Exit Fee is to be included in every settlement of the Note, an additional 15% of the principal balance, which totals $2,448,000, was recognized along with the principal balance, and offset by a contra account in a manner similar to a debt discount. In addition to the Investor’s right of redemption, the Company has the option to prepay the Notes at any time prior to the Maturity Date by paying a premium of 15% plus the principal, interest, and fees owed as of the prepayment date.
F-16
Within 180 days of the issuance date of the Note, the Company will obtain an effective registration statement or a supplement to any existing registration statement or prospectus with the SEC registering at least $15,000,000 in shares of Common Stock for the Investor’s benefit such that any redemption using shares of Common Stock could be done using registered Common Stock. Additionally, as soon as reasonably possible following the issuance of the Note, the Company will cause the Common Stock to be listed for trading on either of (a) NYSE, or (b) NASDAQ (in either event, an “Uplist”). In the event the Company has not effectuated the Uplist by March 1, 2022, the then-current outstanding balance will be increased by 10%. On February 7, 2022, the Company and the Lender entered into an amendment to the SPA, which extended the date by which the Uplist must be completed to April 15, 2022. In consideration of the grant of the extension there was an extension fee of $249,079 added to the principal balance, which has been recognized as a financing cost in the accompanying consolidated financial statements. Subsequent to the year end, the date by which the Uplist had to be completed was further extended to June 15, 2022, with no additional fee included. The Company will make a one-time payment to the Investor equal to 15% of the gross proceeds the Company receives from the offering expected to be effected in connection with the Uplist (whether from the sale of shares of its Common Stock and / or preferred stock) within ten (10) days of receiving such amount. In the event Borrower does not make this payment, the then-current outstanding balance will be increased by 10%. In addition, the Company had 30 days in which to secure the Note and grant the Lender a first position security interest in the real property in Texas and Iowa, and if it had not been effectuated within the 30 days the outstanding balance would have been increased by 15%. The Company was required to reserve 65,000,000 shares of common stock from its authorized and unissued common stock and to add 100,000,000 shares of common stock to the Share Reserve on or before March 10, 2022.
The Note also contains certain negative covenants and Events of Default, which in addition to common events of default, include a failure to deliver conversion shares, the Company fails to maintain the share reserve, the occurrence of a Fundamental Transaction without the Lenders written consent, the Company effectuates a reverse split of its common stock without 20 trading days written notice to Lender, fails to observe or perform or breaches any covenant, and, the Company or any of its subsidiaries, breaches any covenant or other term or condition contained in any Other Agreements in any material. Upon an Event of a Default, at its option and sole discretion, the Investor may consider the Note immediately due and payable. Upon such an Event of Default, the interest rate increases to 18% per annum and the outstanding balance of the Note increases from 5% to 15%, depending upon the specific Event of Default. As of March 31, 2023 and 2022, the Company is in full compliance with the covenants and Events of Default.
The conversion feature met the definition of a derivative and therefore requires bifurcation and was accounted for as a derivative liability. The Company estimated the fair value of the conversion feature derivative embedded in the debenture at issuance at $12,985,000, based on assumptions used in a bi-nomial option pricing model. The key valuation assumptions used consist, in part, of the price of the Company’s common stock of $0.305 at issuance date; a risk-free interest rate of 0.69% and expected volatility of the Company’s common stock, of 125.90%, and the strike price of $0.3075.
On November 4, 2022, the Company entered into a Restructuring Agreement for an Amended and Restated Secured Promissory Note (the “Senior Note”) with the December 2021 Investor through which the December 2021 Note was amended and restated in its entirety. These amendments were made in conjunction with the Merger Agreement, entered into on October 24, 2022, with Yotta Acquisition Corporation (Note 17), The main modification of the terms of the Senior Note was that the conversion feature was eliminated. Second, a Mandatory Payment was added whereby within 3 trading days of the closing upon the Merger an amount equal to the lesser of (A) one-third of the amount retained in the Trust Account at the Effective Time or (B) $10,000,000, in order to repay a portion of the outstanding balance of the Convertible Note; after which the remaining balance of the Convertible Note is to be repaid in equal monthly installments over a 12-month period beginning on a date after the Closing Date or the termination of such agreement. Additionally, if the Closing Date is after December 31, 2022, the outstanding balance of all indebtedness owed by the Company to December 2021 Investor will be increased automatically by 2% and will automatically increase by 2% every 30 days thereafter until the Closing, or substantially similar terms as approved by the Board of Directors of the Company. Additional key modifications include i) the Uplist terms were removed, ii) Maturity date was modified from December 15, 2023 to December 4, 2023, and iii) the outstanding balance of the Convertible Note may be increased by 5% to 15% upon the occurrence of an event of default or failure to obtain the Lender’s consent or notify the Lender for certain major equity related transactions (“Trigger Events”). As of March 31, 2023, the Merger has not yet closed, and therefore the 2% of the outstanding balance was increased as of March 31, 2023, in the amount of approximately $1,336,000.
Wrong again. Record streak possibly. He agreed not to convert contingent on a big payment IF the SPAC goes through and IF the uplist happens. There is zero chance that John Fife has permanently relinquished his ability to convert. He did that at the request of the bankers because they couldn't even get off the start line if there was risk that John Fife could convert. However that agreement not to convert was contingent on the large payment and the uplift. To say that Mr. Fife can't convert if the SPAC and UPLIST does not happen is a lie. Fife would never put himself in that position. Good try and yes, read the filings
Because he has no choice. Once again absurd. If he sells $5,000,000 in stock, where do you think the stock prices goes? BTW, that may be 150-200 million shares. So right now he has no choice but to sit back and believe. In addition, he doesn't necessarily want to start dumping this stock because he is currently getting creamed in his federal lawsuit. Selling $30,000,000 in Natural Shrimp stock isn't a good idea while the lawsuit is going on. One of his arguments is that he didn't receive fair notice. Now he has it because he was sued. So his lawyers are probably telling him not to dump the stock. Educate yourself. Lost some respect when you said Fife has no risk. Almost as bad as someone saying SHMP is a scam. Completely wrong.
No that is a joke. I actually thought you were being sincere on the SPAC, THEFE IS NOT A BANK IN NORTH AMERICA THAT WOULD EXCHANGE THEIR POSITION WITH FIFE. Total joke!!! I think Jerry should march into Wells Fargo and tell them he needs a $30 million dollar loan. Let me know how that works out. Keep us appraised of the progress.
100% accurate. Fife may move for example if he's offered $15 million but there is less than zero chance he's moving for $5 million. He has substantial risk and he knows it more than anyone.
Come on. And based on the sales of SHMP product, their plan is better. LMFAO. So our plan is to sell shrimp at 3-5 times the price and confirm the quality by some guy with a cell phone camera telling people to repeat they taste great. Any buyer from any real company would laugh.
There is zero clarity on production for at least 6 months. Simply answer the question where are the sales. Production problem or price problem. Maybe both.
I'll repeat for the 50th time. SPAC deal is not happening. There are too many reasons to list why.
For example, let's assume your right on everything and SHMP doesn't even need the SPAC. So you know what I do. Vote no, watch the stock sink and buy it a penny.
You can twist the story any way you want. Blue Star Foods has at least 20 times the revenue of SHMP and trades at less than cash value. And less debt. Nasdaq is not helping them.
Actually there are several companies dying in the aquaculture industry on Nasdaq with 50-100 times the sales of SHMP. Nasdaq is not a savior unless they get the money from the SPAC. I get the company line regarding the tech but every aquaculture company says the same thing.
Utah, I really like when we have a sensible conversation and not attacking. You do understand that the valuation of assets in the case of a company like this is random at best. So to conclude the company has $40 million in assets is possibly real but possibly dreamland.
Typically, assets are valued at equipment cost plus a hope and prayer on IP and land.
The problem with that is it would be quite difficult to identify one real buyer so is it real that a buyer even exists or further, a buyer would pay what SHMP paid.
Case in point. Veroblue was bought for $10 million and $140 million was invested. But SHMP paid let's say $30-40 million to build what they have and you are valuing at cost.
Further, I had a conversation with a major player in the aquaculture industry and this is what they told me about Iowa. "I looked at the operation and I wouldn't take it if it was given to me."
So I believe you are arriving at a dreamy conclusion. You may be correct on the $40 million in assets, maybe.
There is not a thing that has any relevance except for the SPAC. If the SPAC doesn't happen, the company is in deep financial trouble
Utah you can of course easily prove him wrong. However I do agree. SHMP can't guarantee a consistency of supply and meet the price requirements and therefore, it's not happening with US Foods. However call Gerry. He will talk about a chef in Dallas at a country club who loves his shrimp who he has been talking about for 10 years.
We are very close to the moment of truth to potentially make a new 52 week low. I believe we do. Called this last week and it's taking a little longer than I thought. Toxic guys don't want to bang bids but they will run out of patience
Actually good try but way to avoid the question. BTW, there is zero wrong with anyone from US Foods telling anyone that we are not selling their shrimp. What is more of an issue is to keep the charade going that we are doing business with US Foods if there are no sales. And that is why of course there has been zero updates from SHMP on US Foods. By the way, spoiler alert. Chances of SPAC deal happening. Beyond long shot.
Can you tell me what statute says that? So it's publicly announced Shrimp and US Foods but US FOODS isn't allowed to say zero sales to date. Wow.
I agree with the US foods statement but for different reasons. First, US Foods's customers do not want heads on shrimp. Second, SHMP sells shrimp that are at the maximum size of 26-30 heads off. US Foods can get Amrican wild caught unprocessed shrimp for less than $6 wholesale all day long. That is most likely below SHMP's cost to produce.
Because they are taking a flyer believing that the cost to produce at scale is on the $5 area and the tech can do it continuously at scale. Just like the company in Florida and Trane and others, they will realize the claims are a reach at best. If Niterra is as sure as you are, they would license the tech right now and the broke company would accept the offer or they would buy the company and so would 50 other companies.
Actually not really. The astute conversation would be when you can buy wild caught American shrimp at $5 wholesale all day long, why in the world would you pay $22 a pound or even $9 a pound. I would then say but some guy with a cell phone camera fed people lines at a trade show and asked them, "Don't they taste great?" And the Whole Foods buyer would say you are asking me to pay a super premium price. So unless you can truly show me a valid real known focus group arrived at that conclusion and they were truly better, the guy with the cell phone camera feeding people lines means zero.
Actually not sneaky, pretty smart. To be clear, I did not call US FOODS. However, I don't believe that US FOODS will ever me a material buyer of SHMP's product. Too expensive
Franny it is very complicated. When does one's right to do due diligence become non public information. Let's just say I called US Foods and I spoke to someone I knew and and they said there is zero chance we buy from Natural Shrimp because the price for those size shrimp is too expensive. That didn't happen but let's say it did and I sold the stock, is that material non public information. It is gray. I'll explain why. Let's say it did happen. Would you put in an immediate sell order. Probably not and that is why it's gray. In the Martha Stuart trial, it was very common knowledge that the success of that trial and the anticipated success was key to the elevated stock price.
No. It is a long shot at best. By that I mean 75-1 at the minimum.
Utah, the SPAC DEAL IS NOT HAPPENING. It is a very long shot at best. People actually believe it is happening based on these statements. Maybe even Niterra believes it.
No. Because it wasn't derived from a non public source. That is why it's called "inside" as to information that is number 1 material to the average investor and number 2, information that would only be available to an insider. If a General Motors burns down at 8 in the morning and I sell the stock at the open, it is not inside information.