LA COSTE, Texas, Jan. 18, 2017 /PRNewswire/ -- NaturalShrimp Incorporated (OTCQB: SHMP) (the "Company"), a global eco-friendly producer of shrimp grown in technologically unique indoor saltwater facilities, has retired approximately $2,500,000 of existing notes payable, plus accrued interest, originally issued to fund the Company's 35,000 square foot facility in La Coste, Texas.
The Company has entered into a new loan agreement with Community National Bank in Castroville, Texas for approximately $245,000 (the "CNB Note"). Concurrent with the closing of the CNB Note, $200,000 of the proceeds was used to pay down the approximate $2,500,000 of existing notes and accrued interest payable, with the remainder being used for working capital and to pay down additional debt. The Company expects to finalize agreements memorializing the payoff of the notes and to release the Company from any further obligations under the notes. In addition, the Company does not anticipate any negative tax implications from this transaction.
Natural Shrimp President, Gerald Easterling, commented, "We are extremely happy that this note holder has chosen to retire this debt. With the retirement of this debt, we are expecting to finalize our lease agreements for the enhanced equipment package that we have been developing with our corporate partner over the last several months."
Natural Shrimp Chief Financial Officer William Delgado also commented, "We are very excited that this note holder, who is also an approximate 4.5% equity holder in the Company, has expressed its confidence in our business plan to facilitate this agreement. The Company expects to announce further balance sheet improvements within the next few weeks."
For further information on this transaction, the Company has filed an 8-K with the Securities and Exchange Commission, as filed on January 17, 2017.
About NaturalShrimp Incorporated
NaturalShrimp Incorporated is a publicly-traded agro-tech company located near San Antonio, in La Coste, Texas. It has developed and tested the first commercially viable system for growing shrimp indoors using proprietary technologies in a system that produces healthful, naturally grown shrimp without the use of antibiotics or toxic chemicals. Visit www.naturalshrimp.com.
This press release may contain forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the viability of the Company's technology in the market; the Company's ability to retain key employees; the Company's ability to gain customer acceptance of its products; general market conditions; changes in operations and product strategy; and the risks and uncertainties discussed under the heading "Risk Factors" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended March 31, 2016, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
Bill G. Williams, Chief Executive Officer
Telephone: (888) 791-9474
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SOURCE NaturalShrimp Incorporated