Under the agreement GSI, a Florida-based seafood distributor, will purchase, distribute and market NaturalShrimp’s farm-grown vannamei, using a unique method of keeping shrimp alive during shipping without the need for adding water to the package. Minimum pricing for shrimp delivered will not be less than $10.50 per pound.
If the trial is successful, GSI will potentially commit to a long-term distribution agreement for a share of NaturalShrimp’s 2022 production. GSI will assist in procurement and set up of ancillary materials including necessary equipment and facilities, logistical support, staff training and packaging necessary for the shipment of live shrimp.
“This agreement is a major milestone in the commercialization of our land-based gourmet-grade shrimp and the commencement of weekly production at our shrimp facilities,” said Gerald Easterling, CEO of NaturalShrimp, in a press release. “In addition to the fresh retail and wholesale markets, NaturalShrimp’s ability to provide live shrimp to the market on a weekly basis is unique to the industry. GSI is a well-known distributor with a large network of buyers with the logistics and capacity to market our products. We are confident that after an initial successful partnership period, we will embark on a longer-term distribution agreement with GSI. At this stage of commercialization, with weekly production on track for the first quarter of 2022, we have numerous sales channel partners in place. We are now highly focused on attracting customers and finalizing customer agreements with distributors and processors for long term supply agreements. We look forward to working with the team at GSI and updating shareholders in the coming months on our progress.”
William Delgado, chief financial officer of NaturalShrimp, added: “We will be selling various sizes of shrimp to GSI at a price of $10.50 per pound. With this agreement in place, we are projecting sales for the December 2021 quarter of between $300,000 to $500,000. As sales and customers begin to ramp, we expect to be cash flow positive from sales and licensing agreements somewhere between the first and second quarters of calendar 2022. We are eager to enter the commercialization phase of our company and continue to build long-term value for our shareholders.”
Meanwhile the company has appointed the experience aquatic veterinarian Christine Huynh to lead its subsidiary, Natural Aquatic Systems (NAS).
The role will involve leading the research being conducted at the Marineholmen RASLab in Bergen to explore the potential welfare benefits of the application of hydrogas and the incorporation of electrocoagulation – two of NaturalShrimp’s key production components.
“Christine brings a wealth of animal health and veterinary knowledge, and will provide valuable insight and direction for NAS,” said Easterling. “Her leadership skills and technical experience complement our work in Norway to evaluate the effects of hyper-antioxidant technologies on oxidation and fish health in recirculating aquaculture systems (RAS). With our successful initial validation study, she will lead the further exploration of production, health and welfare effects.”