NaturalShrimp Inc (SHMP)

[moxa1]

This is the post of the day.

Interpreting the S-1

The S-1 was negotiated, completed, and announced some time ago. To be sure, it was back in December when the stock was trading at .015.

The company has the OPTION to draw on the registered shares with GHS as they see fit. It's a great backup option for the company to get some cash in the event that they can't raise capital from a stronger source. This is not immediately dilutive by any means.

Management could not have predicted that the stock would move how it did. Now that it has, it's likely that they will be able to raise money at much better terms.

If SHMP files a put notice with GHS, GHS will be issued shares at a 20% discount from the lowest traded price within the preceding 10 trading days. No doubt favorable terms for GHS, but the amount of stock GHS can get is at SHMP Managements discretion.

At worst, this S-1 gives SHMP enough runway to keep the lights on for another year AND build out a couple new facilities with some dilution. At best, SHMP has this line of credit in their back pocket, but will raise significant capital elsewhere without filing any put notices.


THANK YOU NOTABLECALLS!