Shrimp Is it what you think? 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 The United States Loves Shrimp
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 Bad America Doesn’t Produce Enough
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. More Bad News
Destroyed Ecosystems Climate Change Private Asia and Central America shrimp Imported, farmed shrimp can be ten farms utilize destructive procedures that times worse for the climate than beef. wipe out extensive mangroves relied According to one estimate, each pound upon by local and indigenous fishing of shrimp cultivated on clear-cut communities for food, income, and other mangroves indirectly emits 1 ton of resources like firewood. CO2. That’s ten times the carbon footprint of beef raised on land cleared Disease in the Amazon rainforest. Crowded and unsanitary conditions Pollution found at most industrial shrimp farms result in the use of high levels of Almost all commercial shrimp operations pesticides, antibiotics, and other often utilize seawater to grow shrimp, falling banned chemicals to prevent disease. victim to disease, pollution, and Even so, BusinessInsider.com reported environmental factors that impact the in 2020 that "The Huanan Seafood health of the shrimp. In 2010, U.S. Wholesale Market in Wuhan, which sold domestic shrimp fisheries in the Gulf of more than seafood, closed January 1 Mexico were closed for the better part after it was found to be the most likely of a year after the Deepwater Horizon starting point for the outbreak of the exploded. 4.9 million barrels of crude oil new coronavirus." dumped into the Gulf as a result. Coronavirus Might Lead to a The Bad News Meat Shortage Next Coronavirus complications eater.com Is Making Headlines will likely affect shrimp supply chain seafoodsource.com
The problem reaches far outside if the boarders of the shrimp U.S. Food Supply Chain Is Strained as Virus Spreads industry. The recent COVID-19 virus has put a spotlight on nytimes.com food born illness and the impact highly contagious disease can have on a societies health, economy, and safety. Covid-19 could threaten Coronavirus breaks global food supply, UN warns the food supply chain cnn.com We provide solutions! axios.com The Ugly Human Trafficking and Slavery
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.
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 In the California Desert
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. 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 Elevated When 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 Farm
Genetically Superior Post-Larvae Grow in an Advanced Farm Ecosystem Capturing a Captive Local Market Centrally 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.
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. Delivered Live or Fresh-Dead
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.
Take away
Now is your chance to capture your piece of an American Opportunity Staffed by Experts
NAB 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. The Hatchery Feeds the Farm
Optimized Hatchery Self Contained
Commercial shrimp hatchery for Local production and Post Larvae “seedstock.” distribution site.
Organic Process Unique Genetics
Organic and environmentally Integrative and polytrophic aquatic responsibly grown product. species production program.
Smart Breeding Program
Strategic 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. Stocking and Grow-out
Post Larvae To 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.
Stocking the facility will begin after basic facility upgrades are complete approximately 30 days from initial funding. 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 Voluntary Export SPF and 2-year disease free Aquaculture facility license Facility Registration recordings against all OIE Market Advantage
PRODUCTION FACILITY ENVIRONMENTALLY FRIENDLY
The production facility is Our facility is located on an 80 acre parcel environmentally friendly and approximately 100 miles diminishes operating costs East of Los Angeles. The through the use of renewable property consists of wells, solar power energy. large production tanks and existing ponds; distant from marine pathogens. ORGANICALLY PRODUCED PROPRIETARY METHOD
Our shrimp are organically Company has proprietary produced and, due to our feed and protocols that disease resistant genetic reduce feed costs and program require, no drugs or maximize growth rates. antibiotics to maintain health and favorable growth rates. Supply & Demand
Premium 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 Opportunity North 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 PRODUCTION Production 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. Marketing, Sales, and Growth
PRICING: 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.
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. Flexible Participation
This is an initial offer with flexible participation. The company is seeking at least $1M to launch their successful $1M $5M $10M shrimp farming operations. The $5M and $10M investment figures options further capitalize the company toward rapid success. $1 Million Dollar Investment $5 Million Dollar Investment $10 Million Dollar Investment
The next three slides will outline monetary projections 20% Ownership 35% Ownership 45% Ownership relative to participation at $1M, $5M, and $10M dollars. Repayment from 80% Profits Repayment from 80% Profits Repayment from 80% Profits $1 Million Investment Terms •20% company ownership
•Investor retains 80% of profits until capital contribution is restored
•Rapid return on investment
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 $5 Million Investment Terms •35% 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 $10 Million Investment Terms •45% 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 Risk Factors
Risks 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:
Backup Generator Failure Competitive Technologies Failure of our backup generator system and monitors alerting plant Competitors may develop product that is equally desirable and our status as an exclusive, management to take action could fail. locally grown product will be less competitive.
• There are routine physical plant inspections and manual readings taken. • We expect developments to be made by others but anticipate that early presence in the • Additionally, a lab technician will maintain a 24 hour presence for marketplace will retain adequate market share due to branding and overwhelming demand. emergency maintenance issues, along with providing security • Our projected sales price is conservatively set within the parameters of a non-exclusive monitoring. product offering.
Insufficient Market Penetration Weather Anomalies Pathogenic or Toxic Event Sales projections may not be met There could be hindrances to A pathogenic or toxic event may occur at our facility contaminating and due to inability to penetrate market. timely production cycles as a creating losses in some or all of our tanks. result of weather anomalies etc. • Our production facility is intentionally stocked with disease free and disease Adverse Shipping Event tolerant seedstock and will maintain strict bio-security protocols. • Tanks will have state of the art filtration monitored for adverse pathogens. Shipments may suffer an adverse event resulting in • Tanks will operate on multiple distinct water systems so that a potential delays and subsequent mortalities. contamination would be limited to only one series of tanks. Executive Team
Steve Hamman, Founder - Chief Executive Officer
Steve 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. Our Thanks to You North America Broodstock
858-888-0589 NorthAmericaBroodstock.com [email protected]