Financial institutions invested in NaturalShrimp have asked a Utah court to allow for the sale of its assets, which would include the aquaculture’s property in Webster City.

The firm has been in receivership since September of 2024 when Streeterville Capital LLC and Bucktown Capital LLC successfully argued in court that a third party needed to temporarily take control of the business.

That third party, AmplĔo Turnaround and Restructuring, LLC, was named as Receiver of NaturalShrimp, Inc., NaturalShrimp USA Corporation, NaturalShrimp Global, Inc., and Natural Aquatic Systems, Inc.

Earlier this week AmplÄ“o asked the Third Judicial District Court for the County of Salt Lake, in Utah, for “approval to sell substantially all of the receivership entities’ assets to Streeterville Capital, LLC, and Bucktown Capital, LLC (or their designees) or any other party with a higher and better offer free and clear of all liens, interests, claims, and encumbrances,” according to court documents.

“The Webster City Property continues to operate at approximately one third capacity,” the February 11 filing states. “These operations generate sales of 400 to 500 pounds of shrimp per week.

“Live shrimp is transported primarily to Chicago, with other amounts going to smaller markets,” the document states.

“The Receivership Entities have one customer that buys shrimp at the Webster City facility and then transports them to nearby retail markets. Current income from the sale of shrimp does not cover operating and overhead expenses, and, in Receiver’s opinion, the Receivership Entities cannot survive as a going concern without additional capital or debt.”

It adds, “There continues to be no production at the Blairsburg Property or the Radcliffe Property.”

In addition to the Iowa properties, NaturalShrimp owns property in La Coste, Texas.

The filing offers the following values on NaturalShrimp’s assets:

— Vehicles: $112,000, less $60,000 for title issue vehicles

— Intellectual Property: $5.7 million — Remaining Personal Property: $1,250 million

— 2567 190th Street, Blairsburg, Iowa: $325,000

— 12282 200th Street, Radcliffe, Iowa: $550,000

— 401 Des Moines Street, Webster City, Iowa: $7 million

— Texas Real Property: $2 million

On December 29, 2021, Streeterville filed a financing statement with the state of Nevada effectively placing a blanket lien on all of NaturalShrimp’s assets, the filing states. Eventually, NaturalShrimp’s failure to pay the outstanding balances of the notes by their maturity due date resulted in a “Major Trigger Event” as of August 16, 2024. The Receiver, according to the filing on February 11, has visited the three real properties in Iowa. It met with employees and took an inventory of assets.

“On November 7, 2024, the Receiver also met with Streeterville Capital at the Webster City Property,” according to the filing. “Since Receiver’s appointment, there have been three employees who voluntarily terminated their employment and one employee that was terminated for cause.”

According to the filing, NaturalShrimp employees inventoried “all personal property at the NS Real Properties in October 2024” prior to the Streeterville visit in November.

There have been several discussions with a prospective third-party purchaser of the Radcliffe property. “In short, the net proceeds from the prospective purchaser would not have been sufficient for Streeterville to release its mortgage on the Radcliffe Property,” the filing states.

The Blairsburg property is under a temporary lease that has been extended through March 2025.

History

“NaturalShrimp is a publicly traded company (Symbol: SHMP) that was initially incorporated on July 3, 2008, in the state of Nevada under the name “Multiplayer Online Dragon, Inc,” the request for a Receivership sale states.

“On November 26, 2014, NaturalShrimp (then Multiplayer Online Dragon, Inc.) entered into an asset purchase agreement with NaturalShrimp Holdings, Inc. (“NSH“), a Delaware corporation, pursuant to which NaturalShrimp agreed to acquire substantially all of NSH’s assets, which assets consisted primarily of all of the issued and outstanding shares of capital stock of NaturalShrimp USA and NaturalShrimp Global and certain real “On January 30, 2015, NaturalShrimp consummated the acquisition of NSH’s assets pursuant to the aforementioned agreement.

“In accordance with the terms of the agreement, NaturalShrimp issued 75,520,240 shares of our Common Stock to NSH as consideration for the assets.

“As a result of the transaction, NSH acquired 88.62% of NaturalShrimp’s issued and outstanding shares of Common Stock at the time, and NaturalShrimp USA and NaturalShrimp Global became wholly owned subsidiaries of NaturalShrimp.

“In connection with the purchase of NSH’s assets, NaturalShrimp changed its principal business to a global shrimp farming company.

The court documents describe NaturalShrimp as a biotechnology company “that has developed proprietary platform technologies that allow it to grow shrimp in an ecologically controlled, high-density, low-cost environment, and in fully contained and independent production facilities.

“NaturalShrimp’s system uses technology that allows it to produce a naturally grown shrimp ‘crop’ weekly and accomplishes this without the use of antibiotics or toxic chemicals.”

The filing claims: “On December 25, 2018, NaturalShrimp was awarded U.S. Patent ‘Recirculating Aquaculture System and Treatment Method for Aquatic Species’ covering all indoor aquatic species that utilizes proprietary art.”

Starting in or about 2021, its lenders provided millions of dollars to NaturalShrimp to fund its natural shrimp project and company, the filing states.

The Receivership was the result of the lenders filing a lawsuit in Utah on September 4, 2024.