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ShrimpI s i t w h a t y o u t h i n k ?
Occasionally, a remarkable development takes place that redefines what’s possible for humanity.
This slide deck defines this remarkable development,
highlighting the opportunity that's sure to place
stakeholders at the forefront of a market shift.
To Appreciate the Magnitude of our extraordinary development, we must first paint the picture
of an industry that's responsible for producing a food product
that’s prized in every corner of the globe, regardless of
socioeconomic standing, religious belief, or geographical location.
We’ll look at the good, bad, and ugly, as it is today, and show you
how the significance of our story stands to change everything.
The Good
Consumptive shrimp is one of the most sought-after foods in the
world. Americans alone consume more than one billion pounds of
shrimp annually, making this by far the most popular seafood for
consumption in the United States.
According to the World Wildlife Federation, "Shrimp is the most valuable
traded marine product in the world today. In 2005, farmed shrimp was a
$10.6 Billion industry.” Today, the global shrimp farming industry has
grown by nearly 325% in 15 years to about $45 Billion.
The United States Loves Shrimp
The Bad
Up to and until now, the United States had no method for
producing enough shrimp to satisfy the appetite of the
American Consumer. Shrimp farms in Southeast Asia and
Central America, plagued by disease and contamination,
deliver frozen, 90% of the shrimp Americans eat.
America Doesn’t Produce Enough
Destroyed EcosystemsPrivate Asia and Central America shrimp farms utilize destructive procedures that wipe out extensive mangroves relied upon by local and indigenous fishing communities for food, income, and other resources like firewood.
PollutionAlmost all commercial shrimp operations utilize seawater to grow shrimp, falling victim to disease, pollution, and environmental factors that impact the health of the shrimp. In 2010, U.S. domestic shrimp fisheries in the Gulf of Mexico were closed for the better part of a year after the Deepwater Horizon exploded. 4.9 million barrels of crude oil dumped into the Gulf as a result.
Climate ChangeImported, farmed shrimp can be ten times worse for the climate than beef. According to one estimate, each pound of shrimp cultivated on clear-cut mangroves indirectly emits 1 ton of CO2. That’s ten times the carbon footprint of beef raised on land cleared in the Amazon rainforest.Disease
Crowded and unsanitary conditions found at most industrial shrimp farms result in the use of high levels of pesticides, antibiotics, and other often banned chemicals to prevent disease. Even so, BusinessInsider.com reported in 2020 that "The Huanan Seafood Wholesale Market in Wuhan, which sold more than seafood, closed January 1 after it was found to be the most likely starting point for the outbreak of the new coronavirus."
More Bad News
Coronavirus breaks the food supply chain
axios.com
The Bad NewsIs Making HeadlinesThe problem reaches far outside if the boarders of the shrimp industry. The recent COVID-19 virus has put a spotlight on food born illness and the impact highly contagious disease can have on a societies health, economy, and safety.
We provide solutions!
U.S. Food Supply Chain Is Strained as Virus Spreadsnytimes.com
Coronavirus Might Lead to a Meat Shortage Next
eater.comCoronavirus complications will likely affect shrimp supply chain
seafoodsource.com
Covid-19 could threaten global food supply, UN warns
cnn.com
International commercial shrimp farming does more than impact the
health and wellbeing of the planet and consumers of shrimp.
Countries like but not limited to Mexico, the Philippines, Brazil,
Guatemala, and Bangladesh see widespread instances of human
trafficking, slavery, murders, and rapes of slave workers who
underperform and activists who protest the unsavory nature of the
industry.
The UglyHuman Trafficking and Slavery
One example in 2014, an investigation from the Guardian discovered
that men kidnapped to work aboard Thailand’s so-called ‘ghost ships’
were starved, drugged, and forced to work 20-hour days. Men too
sick to work were thrown overboard. Those who disobeyed their
captors were tortured or executed.
A Miracle
One hundred miles east of Los Angeles is the world’s
first non-marine water shrimp hatchery. Unlike every
other commercial shrimp hatchery in the world, this
facility utilizes water that’s not from the ocean to produce
pathogen-free, disease-resistant, and genetically
selected post-larvae and broodstock.
The core of our success is reinforced by feedback from
strategic partners who validate our hatchery methods
and provide a critical assessment with performance data.
NAB has delivered over 10,000,000 post larvae to a farm
in Texas where genetic lines performed well in farm
grow-out conditions.
In the California Desert
Invest in an American Shrimp Farm
Ideally located, this shrimp jewel in the California
desert is poised and ready to expand into a fully
operational shrimp farm, raising premium shrimp
from their line of superior seedstock.
This shrimp farm establishes the only source of
fresh American grown shrimp on the west coast.
These shrimp are clean, safe, and trusted by
everyone who loves shrimp. The farm is eco-
friendly, sustainable, and a model for the future
of shrimp farming.
Shrimp Farming ElevatedWhen investment dollars are put to work
• Deterministic growth rates and controlled harvest cycles
• Fully traceable and organically grown shrimp
• Bio-safe, disease and virus free environment
• Completely sustainable and environmentally friendly
• Locally grown and delivered live to a huge consumer market
• From the only licensed commercial shrimp producer in California
NAB Hatchery Feeds the FarmGenetically Superior Post-Larvae Grow
in an Advanced Farm Ecosystem
The company is the only commercial shrimp producer licensed with the California Fish and Wildlife, uniquely
positioned to supply fresh, locally grown shrimp to 30 million neighborhood consumers. When compared to
other sources, fresh shrimp enables customers to taste the unparalleled difference in quality with every bite.
Capturing a Captive Local MarketCentrally located to serve 30 million consumers within a few hours drive of Los Angeles,
San Diego, Orange County, Palm Springs, Phoenix, Las Vegas, and San Francisco.
Delivered Live or Fresh-Dead
Take awayNow is your chance to capture your piece of an American Opportunity
The superior taste, texture, and dining experience for a consumer
enjoying a meal prepared using live or fresh-dead shrimp is
unparalleled. Investment in a centrally located shrimp farm, one that
leverages everything NAB has to offer, stands to set the standard for
quality with America's favorite seafood. Beyond supplying food to
one of the largest and wealthiest populations on the planet,
additional product may be flown to other domestic and foreign
metropolitan markets utilizing a proprietary shipping method.
Staffed by ExpertsNAB has a staff of highly skilled and experienced shrimp aquaculturists who
oversee all aspects of production and monitor all technical elements
including feed, biologic health, algal culture, water quality, and growth.
Smart Breeding ProgramStrategic selection both among and within families allowed us to achieve genetic gains without the consequences of inbreeding.
Farming partners offer us critical assessment which is factored into final analysis and selection. Disease resistance and growth are validated through actual harvests before final assessment in genetic selection.
Optimized HatcheryCommercial shrimp hatchery for
Post Larvae “seedstock.”
Self ContainedLocal production and
distribution site.
Organic ProcessOrganic and environmentally responsibly grown product.
Unique GeneticsIntegrative and polytrophic aquatic
species production program.
The Hatchery Feeds the Farm
Stocking and Grow-out
Stocking the facility will begin after basic facility upgrades are complete approximately 30 days from initial funding.
Post LarvaeTo be produced in our bio-safe hatchery located on site. They will be grown in nursery tanks for approximately 30 days prior to stocking in grow out ponds. Our facility consists of a series of maturation (breeder), larval and grow-out tanks with an array of filtration and associated monitoring equipment. The expertise of our Chief Operating Officer and aquaculturists will be heavily relied upon to maintain ideal water conditions and animal health. Daily monitoring combined with multiple feedings and periodic biologic animal assessments will be the responsibility of biologists and their assistants.
Pond Stocking
Will occur once shrimp are at ideal size for
outdoor survival. They will be grown out and
harvested intermittently to maximize capacity
and market opportunity. The larger product
will be harvested approximately 100 days
after stocking while some product will be
harvested in as little as 60 days to satisfy
market demand for various product requests.
Design and Layout
Our team has designed a plant layout that
can reach maximum production efficiency
utilizing state of the art equipment and
methods. Technicians will maintain a
presence for emergency maintenance
issues, along with providing security
monitoring. Our production manager has
thirty years experience in hatcheries and
shrimp production, including management
of the largest hatchery in Ecuador.
• NAB is the only shrimp hatchery
in the Western United States.
• NAB is one of only four
hatcheries in North America.
CALIFORNIA USDA - APHIS TRACK RECORD
California Fish and Wildlife Aquaculture facility license
Voluntary Export Facility Registration
SPF and 2-year disease free recordings against all OIE
Market Advantage
ORGANICALLY PRODUCED
Our shrimp are organically produced and, due to our disease resistant genetic
program require, no drugs or antibiotics to maintain health and favorable growth rates.
PRODUCTION FACILITY
The production facility is located on an 80 acre parcel
approximately 100 miles East of Los Angeles. The property consists of wells, large production tanks and existing ponds; distant from
marine pathogens.
ENVIRONMENTALLY FRIENDLY
Our facility is environmentally friendly and diminishes operating costs
through the use of renewable solar power energy.
PROPRIETARY METHOD
Company has proprietary feed and protocols that reduce feed costs and maximize growth rates.
Supply & DemandPremium shrimp sales are limited by supply. Fresh, live, organically grown product is in high demand, particularly in the Asian markets and quality restaurants such as sushi. Fresh live shrimp typically sell for $25 to $35 per pound in retail markets. Product of this variety is often flown in at a premium.
Demand Extends OpportunityNorth America Broodstock produces the kind of product that a global consumer demands.
SHRIMP’S POPULARITY IN THE U.S.America’s most popular seafood ($7.5B) produced locally in an
environmentally friendly manner is uniquely supported by our
vertically integrated hatchery and expertise.
SCALABLE PRODUCTIONProduction capacity, based upon current infrastructure supports
first year grow-out of 100,000 pounds, over $1M in revenue.
Strategic development of operations would provide the capacity
to increase year over year production to an overall capacity in
excess of 2,500 tons annually, or $50M in revenue.
Long-term Strategy utilizes online technology to leverage distribution avenues that maximize profits for the company and its investors.
Subsequent Years have estimated an annual growth rate of 20% due to the continued promotion of brand and cultivation of new clients (restaurateurs and brokers).
Sales Continue the second year to see cultivation of market relationships and other marketing efforts, including publications and conventions.
Second Year Sales will see completion of facility upgrades and significant increase in production and grow-out capacity.
First Year Sales produce two full production cycles of approximately 100 days each, with intermittent partial harvests to accommodate specific market needs.
Marketing, Sales, and GrowthPRICING: Fresh live shrimp will be sold for approximately $10 to $18 per pound, depending on product size.
The NAB farm has the capacity to produce over 2,500 tons in annual production when fully developed. Initial year of production approximately 100,000 pounds.
Flexible Participation
This is an initial offer with flexible participation. The company is seeking at least $1M to launch their successful shrimp farming operations. The $5M and $10M investment figures options further capitalize the company toward rapid success.
The next three slides will outline monetary projections relative to participation at $1M, $5M, and $10M dollars.
$1M $5M $10M
$1 Million Dollar Investment20% Ownership
Repayment from 80% Profits
$5 Million Dollar Investment35% Ownership
Repayment from 80% Profits
$10 Million Dollar Investment45% Ownership
Repayment from 80% Profits
Financial Projections $1 Million Investment:PROFORMA: YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE: $1,370,000 $2,055,000 $2,466,000 $2,959,200 $3,551,040
OPEX/COGS: $840,000 $1,008,000 $1,108,800 $1,219,680 $1,341,648
GROSS PROFITS: $530,000 $1,047,000 $1,357,200 $1,739,520 $2,209,392
CUMULATIVE PROFITS: $530,000 $1,577,000 $2,934,200 $4,673,720 $6,883,112
$1 Million Investment Terms •20% company ownership
•Investor retains 80% of profits until capital contribution is restored
•Rapid return on investment
Financial Projections $5 Million Investment:PROFORMA: YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE: $1,370,000 $2,940,000 $4,455,000 $5,346,000 $6,415,000
OPEX/COGS: $840,000 $1,483,000 $1,771,000 $1,948,000 $2,143,000
GROSS PROFITS: $530,000 $1,457,000 $2,684,000 $3,398,000 $4,272,000
CUMULATIVE PROFITS: $530,000 $1,987,000 $4,671,000 $8,069,000 $12,341,000
$5 Million Investment Terms •35% company ownership
•Investor retains 80% of profits until capital contribution is restored
•Rapid return on investment
Financial Projections $10 Million Investment:PROFORMA: YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE: $1,370,000 $5,880,000 $17,820,000 $21,384,000 $25,661,000
OPEX/COGS: $840,000 $2,134,000 $7,824,000 $8,606,000 $9,467,000
GROSS PROFITS: $530,000 $3,746,000 $10,000,000 $12,778,000 $16,194,000
CUMULATIVE PROFITS: $530,000 $4,276,000 $14,276,000 $27,054,000 $43,248,000
$10 Million Investment Terms •45% company ownership
•Investor retains 80% of profits until capital contribution is restored
•Rapid return on investment
Weather AnomaliesThere could be hindrances to timely production cycles as a
result of weather anomalies etc.
Backup Generator FailureFailure of our backup generator system and monitors alerting plant
management to take action could fail.
• There are routine physical plant inspections and manual readings taken.• Additionally, a lab technician will maintain a 24 hour presence for
emergency maintenance issues, along with providing security monitoring.
Competitive TechnologiesCompetitors may develop product that is equally desirable and our status as an exclusive,
locally grown product will be less competitive.
• We expect developments to be made by others but anticipate that early presence in the marketplace will retain adequate market share due to branding and overwhelming demand.
• Our projected sales price is conservatively set within the parameters of a non-exclusive product offering.
Insufficient Market PenetrationSales projections may not be met
due to inability to penetrate market.
Pathogenic or Toxic EventA pathogenic or toxic event may occur at our facility contaminating and
creating losses in some or all of our tanks.
• Our production facility is intentionally stocked with disease free and disease tolerant seedstock and will maintain strict bio-security protocols.
• Tanks will have state of the art filtration monitored for adverse pathogens. • Tanks will operate on multiple distinct water systems so that a potential
contamination would be limited to only one series of tanks.
Adverse Shipping EventShipments may suffer an adverse event resulting in
delays and subsequent mortalities.
Risk FactorsRisks associated that could limit or hinder our ability to achieve financial successes as projected. The
Company has defined some mitigating steps to diminish those risks. Included in those risks are the following:
Steve Hamman, Founder - Chief Executive OfficerSteve Hamman, is a visionary entrepreneur and hands-on administrator. In 2012 he founded a vertically integrated shrimp farming technology company with an emphasis on Recirculating Aquaculture Systems or “RAS”. The company validated its core technology, dramatically improving commercial shrimp farming production capabilities.
He has spent the last nine years in shrimp farming technology development, focused on production efficiencies, feed improvements and superior genetics. He developed the only shrimp hatchery in the western United States and the first shrimp hatchery in the world to utilize non marine water as a final move before launching a robust bio-secure shrimp farming operation.
Previously involved in real estate development in Hawaii, he founded a construction company and oversaw projects from inception to completion; securing government entitlements, bonding, and financing. His oversight included job-site compliance in all regulatory matters, budgeting, cash flow management and logistics for operations.
As a top-ten sales producer on the island of Hawaii and, broker of his own firm, he trained agents to achieve over $50M in sales transactions.
Mr. Hamman is a strategist and problem solver who has consistently applies innovation to excel and overcome challenges. His resourcefulness, pragmatic approach, communication skills, and integrity are the hallmark of his success. Mr. Hamman holds a Bachelors of Arts degree from Wheaton College.
Executive Team
Jorge Tamayo, Chief Operations Officer and Production Manager
Mr. Tamayo has a BA in Business Administration and is a biologist. He has over thirty years experience in shrimp production facilities in Columbia, Ecuador, El Salvador, Mexico, Taiwan, Singapore and the U.S.A. Most recently he has worked with Primo Broodstock shipping disease resistant shrimp broodstock successfully from Florida to China. He evolved shipping techniques that provided over 95% survival rates in shipments that exceeded sixty hours.
He installed bio-filtration for recirculating aquaculture systems at facilities in the United States and Mexico.
His background includes responsibilities as maturation manager of the largest maturation facility in Ecuador where he supervised 35 employees. He has owned and operated a shrimp hatchery in Ecuador where he garnered management experience and an ability to provide reliable solutions.
Executive Team
R. Marshall Frost, Chief Financial Officer
Mr. Frost has extensive experience in basic and advanced estate planning techniques as well as business, transactional, and tax law, with emphasis in the formation and governance of corporations, limited liability companies, and family limited partnerships.
Mr. Frost holds two undergraduate degrees, an AA in Pre-medicine from Fullerton College, and a BA in Business Administration (Accounting) from California State University-Fullerton. He also holds a Master’s Degree in Business Administration from the University of Redlands and earned his Juris Doctor from Ventura College of Law. Mr. Frost has also completed graduate study through the University of San Diego’s Institute on International and Comparative Law, Paris, France and has earned a Certificate from the International Institute of Human Rights, Strasbourg, France.
Mr. Frost is a member of the California State Bar, the United States District Court, California Central District, United States Tax Court, and the United States Court of Appeal, Ninth Circuit. He also conducts public and private seminars on subjects related to estate planning, business formation, and asset protection. Mr. Frost is a member of American MENSA International.
Executive Team
