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No company is committing to a partnership let alone a buyout until the final results are released. A buyout might be premature at this time.
First, they could be harvesting right now. We wouldn’t know unless they wanted us to know. Second, they calibrated the system for 44-50% survival and they based all the financials on that. They based 6,000lbs on that. They were growing really fast in the beginning and they were then figuring less then 24 weeks to get to full size but then they wouldn’t die and the system got over run. They had to re calibrate and play catch up. They are not worried about how long it takes because proving the concept is what really matters. They feel once calibrated for 100% survival they can be back to 24-26 weeks.
Keep up the DD all. Good or bad let’s help each other continue to get the info we need.
I don’t know if that was published but good question. I don’t believe they were done in the 65,000 gallon tank though. Maybe TooFrank knows.
For those new to SHMP. Relevant links for DD.
Harbinger Report: Please note the $2.16 price projection was when the OS was around 100m.
https://d1io3yog0oux5.cloudfront.net/harbingerresearch/media/9a385cf783f3a4e09860f8b6fbf0d4fc.pdf
Video Series of Interviews with CFO Bill Delgado:
https://vimeo.com/user80002699
Interview with CEO Bill Williams:
https://upticknewswire.com/interview-ceo-bill-williams-of-naturalshrimp-incorporated-otcqb-shmp/
Patent:
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1="10,163,199+B2"&OS=
Patent PR:
https://globenewswire.com/news-release/2019/01/03/1680043/0/en/NaturalShrimp-Inc-Receives-U-S-Patent-for-System-it-Developed-to-Grow-Gourmet-Grade-Shrimp-in-Enclosed-Salt-Water-System.html
New Phase PR:
https://www.otcmarkets.com/stock/SHMP/news/NaturalShrimp-Inc-Enters-Next-Phase-of-Development-of-its-US-Patent-Technology-by-Extending-Capability-to-Additional-Sal?id=215342
Filings:
http://naturalshrimp.com/naturalshrimp-incorporated-shmp/#docs
SHMP Personnnel:
http://naturalshrimp.com/key-personnel/
SHMP Partner F&T Water Solutions: Natural Shrimp owns 100% of the shrimp licensing business and 50% of all other aquatic species. F&T owns the rights to manufacture and sell the equipment/software as well as 50% of all aquatic species other than shrimp.
http://www.ftwatersolutions.com/
Peter Letizia – CEO F&T Water Solutions: One of the main sources for info on Natural Shrimp.
https://www.linkedin.com/in/letiziap/
F&T Relevant Updates:
https://www.facebook.com/electrocoagulation/videos/273064056737747/
https://www.facebook.com/electrocoagulation/videos/727530820964933/
https://www.facebook.com/electrocoagulation/photos/a.268347953296214/1434183856712612/?type=3&theater
https://www.facebook.com/electrocoagulation/videos/2060973843940671/
https://www.facebook.com/electrocoagulation/photos/p.1465747670222897/1465747670222897/?type=3&theater
https://www.facebook.com/electrocoagulation/photos/p.1465749810222683/1465749810222683/?type=3&theater
https://www.linkedin.com/feed/update/urn:li:activity:6490986574514257920/
Natural Shrimp News Articles:
https://aquaculturemag.com/2018/01/23/investing-in-innovative-technology-to-solve-demand-for-naturally-grown-shrimp-products/
https://insiderfinancial.com/naturalshrimp-inc-otcmktsshmp-bulls
https://dallasinnovates.com/naturalshrimp-says-new-patented-tech-enables-indoor-propogation-of-all-fish/
https://www.microcapdaily.com/the-fascinating-story-of-naturalshrimp-inc-otcmkts-shmp/122928/
https://oracledispatch.com/2018/11/18/naturalshrimp-inc-otcmktsshmp-probably-shrimp/
https://insiderfinancial.com/naturalshrimp-inc-otcmktsshmp-turns-bullish
https://www.news-journal.com/news/business/texas-shrimp-farmers-try-new-technology-to-prevent-disease/article_a887982e-a24a-11e8-a3ac-f37a660347eb.html
https://www.intrafish.com/aquaculture/1662023/texas-land-based-shrimp-farmer-planning-for-usd-7-million-investment
https://www.foodnavigator-usa.com/Article/2017/05/02/NaturalShrimp-brings-eco-friendlier-US-grown-shrimp-to-market
Relevant Aquaculture Readings:
https://medium.com/edenworks/aquaculture-is-the-biggest-change-to-us-food-production-in-decades-e921a703eb0d?fbclid=IwAR0G_8NCc7eW_54OygHKW8gPrls54Rzkj_8FSAd1lCtNcNDJdF65S-qovWw
https://www.undercurrentnews.com/2018/12/10/perot-tops-growing-list-of-family-funds-eyeing-ras-investments/
https://www.apnews.com/aef9835a7a404bd2a66f33176dc48d50
https://www.seafoodsource.com/news/food-safety-health/report-critical-of-antibiotics-in-indian-shrimp
https://www.undercurrentnews.com/2019/01/07/nine-big-seafood-ma-moves-to-watch-for-in-2019/
Recent Aquaculture Acquisitions:
https://thefishsite.com/articles/adm-announces-proposed-acquisition-of-neovia-establishing-a-global-leader-in-value-added-animal-nutrition-solutions
https://www.hatcheryinternational.com/news/pranger-acquires-ras-company-pr-aqua-3312
https://thefishsite.com/articles/pentair-finalises-vaki-acquisition
https://hydronov.com/pranger-enterprises-acquires-hydroponics-company/
https://www.cbc.ca/news/canada/new-brunswick/cooke-aquaculture-omega-protein-1.4457877
http://rtaqua.com/innovasea-announces-acquisition-of-nortek-akvakultur/
Info on Natural Shrimp going public. A private company since 2001, NS in 2015 purchased a clean shell and went public in order to raise capital for their RAS idea:
https://www.shrimpnews.com/FreeReportsFolder/NewsReportsFolder/USAtxNaturalShrimpApublicCompany.html
https://www.shrimpnews.com/FreeReportsFolder/NewsReportsFolder/USAtxNaturalShrimpUpdate.html
Natural Shrimp Subsidiary Gamba Natural de España, S.L.
http://www.gambanatural.es/
http://naturalshrimp.com/international/
PR Firm Info:
http://www.eandecommunications.com/
Please read and come to your own conclusion if this investment is right for you.
No one is going to commit to a partnership until the final 3rd trail results are released. Hopefully GHS is the back-up plan to that. The delay in the S-1 was because the old terms were scrapped and new supposed favorable terms negotiated. What are the favorable terms? I have no idea. No one's going to talk about that until it happens.
Anyone here have any thoughts on what "favorable terms" could look like if it comes to that?
Ask him how many PL10 shrimp they stocked in this third and final trial run if you don’t mind. This is a critical factor we can’t seem to get a concrete answer to.
Peter L. directly told me a third party would be verifying the results as well. They want have all their ducks in a row when they present the findings to the major corporations that have been expressing interest.
It looks nice as long as the OS is not increased through toxic funding in order to get there. A partnership is key or a least favorable terms that can be managed.
Important update: Going back through my conversation with Peter Letizia I realize I missed something critical. I quickly typed everything up here on memory initially. After looking back though my info see the 2nd paragraph below.
- The expected survival rate for the third and final trial was 44%-50% and they would have moved forward with these numbers into production. There would not have been a 4th trial to try to tweak the systems to get the mortality rate down. They still expected to be profitable at these numbers.
- All the financial analysis done prior to this 3rd and final trial was based on a 44-50% survival rate. 6,000lbs per tank was based on 44-50% survival. "The model at 44-50% at 6 months was still based at the 6,000lbs a week or 300,000lbs a year"
- The estimate is still 100% survival. You typically will find some dead shrimp or evidence of dead shrimp without too much effort. They still have yet to find any evidence of any mortality. Now this does not mean the harvest will come back 100% when all is said and done. I asked if he would say 97-100% was reasonable and said yes that wouldn’t surprise him.
- When 50% was the expectation, they also expected the growth cycle to take less than 24 weeks.
- They do feel they can get back to a 24 - 26 week grow out moving forward with adjustment to the feed and RAS system. They still expect 2 harvests per year per tank.
- Based on the estimated high survival rate, each facility could produce over the 312,000 lb yearly estimate. He didn’t give an exact estimate but that tells me 6,000 lbs per harvest could be a little light now. Make you own conclusions.
- Harvest results coming soon. Results will be verified by third party and data released in the upcoming weeks. Major companies in aquaculture waiting on the final results.
- Both Natural Shrimp and F&T are in discussions with other companies in relation to partnerships and licensing deals. He of course could not elaborate who those companies were. For what it’s worth he did mention Pentair 4 or 5 times without me bringing them up. Never indicated they were in discussions with them but talked a lot about them.
- At first he indicated the companies he is in discussions with were more on the farming side of aquaculture. He then switched gears and indicated RAS equipment providers and food producers/suppliers were also in the mix.
- The Salmon and Barramundi trials should be pretty quick. They want to move forward with this as quickly as possible. He didn’t give a time frame but I asked if it would take 3 years and he said it would not.
- When asked how quickly F&T could manufacture the equipment for one facility he said it would not be an issue at all. They have production partners in place and they can ramp things up pretty quickly.
- It has been discussed in the past as to whether or not they will grow their own shrimp without the need to purchase stock. They are definitely going to breed for themselves in the future or license or own their own hatchery.
- It appears GHS is still in the picture but not at the old terms. When asked if this was the reason for the delay in the S-1 the answer was yes. GHS was at the facility for the recent gathering. He mentioned specifically “favorable terms” but couldn’t really elaborate. I’m concluding they now have better terms and have this in place to fund the upcoming facilities if no one partners with them. Make your own conclusions.
- He also made the statement that there is no buyout on the table that he’s aware of but it would not surprise him if something did happen. He expects that it’s a very strong possibly more so down the road.
I cannot 100% guarantee the accuracy of this information. Just reiterating what Peter told me. Personally I believe him. Make you own conclusions. I am not a pumper. Just a regular person trying to figure this shrimp thing out. As of today I have never sold a single share since adding my first position back in November.
He got it from the old figures based on 44-50% survival.
5:00 minute mark.
https://vimeo.com/259347559
Anyone here with private messaging that's a lawyer or has a good background on law? Can you message me. I have question that is on topic in regard to the companies we are discussing. Nothing bad at all, just a question in regard to how I can and cannot present certain information that I have.
Thanks
Cannot fault you for taking a free ride on the boat.
Wow.... Been busy and just turned on the Shrimp channel for the first time. Good to see it working it's way back up.
Yea it’s just mentioned like “Oh by the way Whole Foods came by no big deal”.
Keep in mind he said this last year about 10 months ago before anyone knew anything about no mortality. Everybody knows about Natural Shrimp. Now can they seal the deal and see this plan though?
I doubt it but maybe someone like Whole Foods would be interested in a partnership. They fund or finance the facilities in exchange for exclusivity on buying the product. I mean we are talking about a commodity here. Who cares where the shrimp go as long each and every one of them is sold.
For those new to SHMP. Relevant links for DD.
Harbinger Report: Please note $2.16 projection is when OS was around 100m
https://d1io3yog0oux5.cloudfront.net/harbingerresearch/media/9a385cf783f3a4e09860f8b6fbf0d4fc.pdf
Video Series of Interviews with CFO Bill Delgado:
https://vimeo.com/user80002699
Interview with CEO Bill Williams:
https://upticknewswire.com/interview-ceo-bill-williams-of-naturalshrimp-incorporated-otcqb-shmp/
Patent:
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1="10,163,199+B2"&OS=
Patent PR:
https://globenewswire.com/news-release/2019/01/03/1680043/0/en/NaturalShrimp-Inc-Receives-U-S-Patent-for-System-it-Developed-to-Grow-Gourmet-Grade-Shrimp-in-Enclosed-Salt-Water-System.html
New Phase PR:
https://www.otcmarkets.com/stock/SHMP/news/NaturalShrimp-Inc-Enters-Next-Phase-of-Development-of-its-US-Patent-Technology-by-Extending-Capability-to-Additional-Sal?id=215342
Filings:
http://naturalshrimp.com/naturalshrimp-incorporated-shmp/#docs
SHMP Personnnel:
http://naturalshrimp.com/key-personnel/
SHMP Partner F&T Water Solutions:
http://www.ftwatersolutions.com/
Peter Letizia – CEO F&T Water Solutions:
https://www.linkedin.com/in/letiziap/
F&T Relevant Updates:
https://www.facebook.com/electrocoagulation/videos/273064056737747/
https://www.facebook.com/electrocoagulation/videos/727530820964933/
https://www.facebook.com/electrocoagulation/photos/a.268347953296214/1434183856712612/?type=3&theater
https://www.facebook.com/electrocoagulation/videos/2060973843940671/
https://www.facebook.com/electrocoagulation/photos/p.1465747670222897/1465747670222897/?type=3&theater
https://www.facebook.com/electrocoagulation/photos/p.1465749810222683/1465749810222683/?type=3&theater
https://www.linkedin.com/feed/update/urn:li:activity:6490986574514257920/
Relevant Aquaculture Readings:
https://medium.com/edenworks/aquaculture-is-the-biggest-change-to-us-food-production-in-decades-e921a703eb0d?fbclid=IwAR0G_8NCc7eW_54OygHKW8gPrls54Rzkj_8FSAd1lCtNcNDJdF65S-qovWw
https://www.undercurrentnews.com/2018/12/10/perot-tops-growing-list-of-family-funds-eyeing-ras-investments/
https://www.apnews.com/aef9835a7a404bd2a66f33176dc48d50
https://www.seafoodsource.com/news/food-safety-health/report-critical-of-antibiotics-in-indian-shrimp
https://www.undercurrentnews.com/2019/01/07/nine-big-seafood-ma-moves-to-watch-for-in-2019/
Recent Aquaculture Acquisitions:
https://thefishsite.com/articles/adm-announces-proposed-acquisition-of-neovia-establishing-a-global-leader-in-value-added-animal-nutrition-solutions
https://www.hatcheryinternational.com/news/pranger-acquires-ras-company-pr-aqua-3312
https://thefishsite.com/articles/pentair-finalises-vaki-acquisition
https://hydronov.com/pranger-enterprises-acquires-hydroponics-company/
https://www.cbc.ca/news/canada/new-brunswick/cooke-aquaculture-omega-protein-1.4457877
http://rtaqua.com/innovasea-announces-acquisition-of-nortek-akvakultur/
Info on Natural Shrimp going public. A private company since 2001, NS in 2015 purchased a clean shell and went public in order to raise capital for their RAS idea:
https://www.shrimpnews.com/FreeReportsFolder/NewsReportsFolder/USAtxNaturalShrimpApublicCompany.html
https://www.shrimpnews.com/FreeReportsFolder/NewsReportsFolder/USAtxNaturalShrimpUpdate.html
Natural Shrimp Subsidiary Gamba Natural de España, S.L.
http://www.gambanatural.es/
http://naturalshrimp.com/international/
PR Firm Info:
http://www.eandecommunications.com/
Please read and come to your own conclusion if this investment is right for you.
Natural Shrimp CFO Bill Delgado when asked have you been in contact with some of the major food distributors?
"Yes, absolutely. Obviously those folks run on their own. The're so big they actually a lot of times skip distributorships and actually you can go direct to those folks. I don't like to mention names but I can tell you up in the northwest one of the biggest grocery chains, high end. I will mention Whole Foods because Whole Foods has been through our plant in San Antonio. Everywhere that we've talked to a grocery store or distributor we have just had the most open arms of just we'll take whatever you have. That's why we had talked about what that distribution, potentially doing a specialized special situation distribution plan for one of those folks."
Starting around 4:08 time mark.
https://vimeo.com/258620397
Updated: I Spoke with Peter Letizia to get some clarification on many unanswered questions I had. Nice guy and he loves to talk about the technology. I can tell you the following:
- The expected survival rate for the third and final trial was 44%-50% and they would have moved forward with these numbers into production. There would not have been a 4th trial to try to tweak the systems to get the mortality rate down. They still expected to be profitable at these numbers.
- The estimate is still 100% survival. You typically will find some dead shrimp or evidence of dead shrimp without too much effort. They still have yet to find any evidence of any mortality. Now this does not mean the harvest will come back 100% when all is said and done. I asked if he would say 97-100% was reasonable and said yes that wouldn’t surprise him.
- When 50% was the expectation, they also expected the growth cycle to take less than 24 weeks.
- They do feel they can get back to a 24 - 26 week grow out moving forward with adjustment to the feed and RAS system. They still expect 2 harvests per year per tank.
- Based on the estimated high survival rate, each facility could produce over the 312,000 lb yearly estimate. He didn’t give an exact estimate but that tells me 6,000 lbs per harvest could be a little light now. Make you own conclusions.
- Harvest results coming soon. Results will be verified by third party and data released in the upcoming weeks. Major companies in aquaculture waiting on the final results.
- Both Natural Shrimp and F&T are in discussions with other companies in relation to partnerships and licensing deals. He of course could not elaborate who those companies were. For what it’s worth he did mention Pentair 4 or 5 times without me bringing them up. Never indicated they were in discussions with them but talked a lot about them.
- At first he indicated the companies he is in discussions with were more on the farming side of aquaculture. He then switched gears and indicated RAS equipment providers and food producers/suppliers were also in the mix.
- The Salmon and Barramundi trials should be pretty quick. They want to move forward with this as quickly as possible. He didn’t give a time frame but I asked if it would take 3 years and he said it would not.
- When asked how quickly F&T could manufacture the equipment for one facility he said it would not be an issue at all. They have production partners in place and they can ramp things up pretty quickly.
- It has been discussed in the past as to whether or not they will grow their own shrimp without the need to purchase stock. They are definitely going to breed for themselves in the future or license or own their own hatchery.
- It appears GHS is still in the picture but not at the old terms. When asked if this was the reason for the delay in the S-1 the answer was yes. GHS was at the facility for the recent gathering. He mentioned specifically “favorable terms” but couldn’t really elaborate. I’m concluding they now have better terms and have this in place to fund the upcoming facilities if no one partners with them. Make your own conclusions.
- He also made the statement that there is no buyout on the table that he’s aware of but it would not surprise him if something did happen. He expects that it’s a very strong possibly more so down the road.
I didn’t have time to get into more questions and he talks a lot so it takes some time when speaking with him. I hope this is helpful. GLTO.
Bobby they'll harvest all at once. How it's been described to me is that it's not possible to just filter out the larger ones. How big they'll be, well that's anyone's guess. Sounds like when they are in full production they'll have different growth cycles for different size shrimp.
This is correct. It has been confirmed that both F&T and NS have been in discussion with major players in aquaculture. It is expected no deals will be finalized prior to the harvest results. Per F&T CEO Peter Letizia these companies range from aquaculture farmers, equipment providers to food suppliers. Nothing is a guarantee of course but I would say there is a good probability of something major happening.
Aquaculture mergers and acquisitions are on the rise. There were 127 deals in 2018 up from 117 in 2017 and 102 in 2016. The 4th quarter of 2018 saw 42 deals alone. In addition, financing appears to readily available:
"The borrowing environment is as good as it has been for a while for US seafood companies, for example, with lots of liquidity, low rates – under 5% a year – and other especially strong terms for five-year loans, the kind used to finance acquisitions in the industry, he told Undercurrent. Seafood company executives know this won’t last forever and they don’t want to miss their window, he said. If they plan to grow by acquisition, they can’t be assured that it will be as cheap to do so in two or three years."
Source: https://www.undercurrentnews.com/2019/01/07/nine-big-seafood-ma-moves-to-watch-for-in-2019/
It appears F&T are the ones leading the race into other aquatic species. NS will focus on their shrimp expansion plan. If F&T makes one major deal that's a huge boost for NS as well. Let's not all forget they own 100% of shrimp licensing and 50% of all other species. While F&T does all the work, NS will reap half the benefits. F&T won't mind at all because they'll be selling all the expensive equipment to the major farming companies.
You bring up some valid points. A potential partner could review the results and state they are extremely interested but would like to see a full 26 tank production run before making a commitment. I have absolutely thought about this. On the other hand however, 24 weeks was never a make or break firm number that had to be achieved to be profitable. From what I know it was simply an estimate used when they projected 50% survival.
I think Josh T is right that the Harbinger Report confuses in regards to 6,000 expected pounds. If they expected 6,000 and they expected 50% survival something doesn't add up.
At 100,000 PL10 and based on what we know (no mortality/ 16-49 grams as of last week) I estimate 7,150 pounds at this time with the possibility for more if the stragglers gain any significant weight.
I will be looking for something in this range when the results come out. Actual mortality levels could change lower this if say we end up at 80 or 90%.
No worries, I’ll get to the bottom of it tomorrow. Wife is home so telling her I’m busy looking up how shrimp live a tank somewhere in TX probably won’t do well for me since she hasn’t seen me all day lol.
My understanding is they stock 120,000 PL10. Please correct me if I’m wrong. I’ll need to go through my research to find exactly where it that info is.
Yeah I wish I could have received a clearer answer to the question of does a 100% survival rate mean double the 6,000 lb projection. Peter said he didn’t know if the originally projected 50% survival rate matched 6,000lbs which I thought was odd. He did say its totally possible they harvest more than 6,000lbs. Based on 100% survival of 120,000 shrimp and the current 16 to 49 gram range I project 8,500lbs if harvested today but please don’t go by what I say. Work the numbers out for yourself. There are smarter people here than me that can test my estimate.
I don't think this is a "sell on the news" type of deal here either (unless the harvest news turns out to be bad). Anticipated news tends to be built into the price in the OTC but most of that news is BS garbage fluff. This could be revolutionary in terms of what the numbers mean.
A side note pertaining to the information in my prior post. It has been discussed in the past as to whether or not they will grow their own shrimp without the need to purchase stock. The answer is:
"a healthy female shrimp can lay 100,000+ larvae per breeding. And yes we are definitely going to breed for ourselves in the future or license or own our own hatchery"
Peter L.
On a day like today I know many just want to talk about the performance of the pps but I thought this was good information to know for those interested.
So for the record, they do plan on breeding their own shrimp.
Aquaculture mergers and acquisitions are on the rise. There were 127 deals in 2018 up from 117 in 2017 and 102 in 2016. The 4th quarter of 2018 saw 42 deals alone. In addition, financing appears to readily available:
"The borrowing environment is as good as it has been for a while for US seafood companies, for example, with lots of liquidity, low rates – under 5% a year – and other especially strong terms for five-year loans, the kind used to finance acquisitions in the industry, he told Undercurrent. Seafood company executives know this won’t last forever and they don’t want to miss their window, he said. If they plan to grow by acquisition, they can’t be assured that it will be as cheap to do so in two or three years."
Source: https://www.undercurrentnews.com/2019/01/07/nine-big-seafood-ma-moves-to-watch-for-in-2019/
I asked exactly what you’re stating but didn’t get a clear answer on it. Just that it “could” be more. I’m sorry I couldn’t be note helpful in regards to that.
Peter never committed to a particular number of pounds. Only stated that they could be looking at more than the estimated 312,000 lbs per year per facility based on the current no visible mortality. I’d be cautious about thinking we are getting 10k or 12k and there will be mortality even if it’s only a tiny percentage.
He won’t chase it. He has a plan and he’s sticking to it. Have to respect that. He’s also in at the bottom. My plan would be different if I was in at the bottom too.
You cannot buy these shrimp yet. The third and final trial is wrapping up and they will likely only be sold locally in SA to high end restaurants and grocery stores. They will probably be long gone before we find out were they went. The next time they will be available is likely late summer/fall 2019 when the first harvest of weekly full production is complete. At that time they may still not be available to people like you and I unless we know they have a specific contract with a retailer where we can find them.
True, and one licensing deal with a major food supplier could change everything. A supplier with deep pockets could be up and running in no time and in production of hundreds of thousands of shrimp before the end of the year. A lot hinges on the harvest results.
He did state new and better terms not like the old terms so take it for what it’s worth. When the S-1 delay came out many here speculated it was because they could get a better deal and are holding out to negotiate with major partners. It appears that’s exactly what they are doing and GHS is there if necessary. No partner is going to fully commit until after the full harvest results. If the results are as good as we expect, good things should follow. If the results are not good the pps will drop anyway well ahead of any dilution. Only insiders will know the truth before it happens. We will never no a partner had been secured until a PR is released.
For what it’s worth he did indicate that F&T could assist NS with the financing of the RAS facility tanks and equipment if necessary. All discussions he’s had with NS indicate he won’t have to. He is confident his partners have everything worked out but would do whatever it takes to help them get up and running if it was needed.
I hope to speak to him again soon to dig deeper into some of these questions. There were a lot of things I couldn’t get to due to time constraints on both sides.
I Spoke with Peter Letizia today to get some clarification on many unanswered questions I had. Nice guy and he loves to talk about the technology. I can tell you the following:
- The expected survival rate for the third and final trial was 44%-50% and they would have moved forward with these numbers into production. There would not have been a 4th trial to try to tweak the systems to get the mortality rate down. They still expected to be profitable at these numbers.
- The estimate is still 100% survival. You typically will find some dead shrimp or evidence of dead shrimp without too much effort. They still have yet to find any evidence of any mortality. Now this does not mean the harvest will come back 100% when all is said and done. I asked if he would say 97-100% was reasonable and said yes that wouldn’t surprise him.
- When 50% was the expectation, they also expected the growth cycle to take less than 24 weeks.
- They do feel they can get back to a 24 - 26 week grow out moving forward with adjustment to the feed and RAS system. They still expect 2 harvests per year per tank.
- Based on the estimated high survival rate, each facility could produce over the 312,000 lb yearly estimate. He didn’t give an exact estimate but that tells me 6,000 lbs per harvest could be a little light now. Make you own conclusions.
- Harvest results coming soon. Results will be verified by third party and data released in the upcoming weeks. Major companies in aquaculture waiting on the final results.
- Both Natural Shrimp and F&T are in discussions with other companies in relation to partnerships and licensing deals. He of course could not elaborate who those companies were. For what it’s worth he did mention Pentair 4 or 5 times without me bringing them up. Never indicated they were in discussions with them but talked a lot about them.
- At first he indicated the companies he is in discussions with were more on the farming side of aquaculture. He then switched gears and indicated RAS equipment providers and food producers/suppliers were also in the mix.
- The Salmon and Barramundi trials should be pretty quick. They want to move forward with this as quickly as possible. He didn’t give a time frame but I asked if it would take 3 years and he said it would not.
- When asked how quickly F&T could manufacture the equipment for one facility he said it would not be an issue at all. They have production partners in place and they can ramp things up pretty quickly.
- It appears GHS is still in the picture but not at the old terms. When asked if this was the reason for the delay in the S-1 the answer was yes. GHS was at the facility for the recent gathering. He mentioned specifically “favorable terms” but couldn’t really elaborate. I’m concluding they now have better terms and have this in place to fund the upcoming facilities if no one partners with them. Make your own conclusions.
- He also made the statement that there is no buyout on the table that he’s aware of but it would not surprise him if something did happen. He expects that it’s a very strong possibly more so down the road.
I didn’t have time to get into more questions and he talks a lot so it takes some time when speaking with him. I hope this is helpful. GLTO.