NaturalShrimpsaid it notified Yotta Acquisition of the company’s termination of their merger agreement. The seafood company claims Yotta breached certain terms of the agreement, including having less than $5 million in assets to close a deal.
NaturalShrimp also cited delays in the SEC’s registration process “that are attributable to Yotta, which breached its covenant pursuant to the merger agreement to use its reasonable best efforts to take all actions reasonably necessary or advisable to consummate the transactions contemplated by merger agreement as promptly as reasonably practicable,” the company said in the filing.
NaturalShrimp said it is currently in negotiations with another entity which will involve a Re-IPO and a new capital raise of between $10 million -$12 million.
When Yotta announced the deal in October 2022, terms called for the SPAC to issue $175 million in stock to NaturalShrimp, plus another $100 million in stock if the combined company were to hit certain revenue targets over the next two years.
Yotta in March sought an extension of up to a year to complete the deal. Shareholders approved the measure, although more than 7.4 million shares were redeemed.
Yotta had raised $115 million in an April 2022 IPO.
Around the same time, Natural Shrimp filed an updated S-4 on the deal, which cut the valuation to $175 million — down from $275 million at deal announcement.
NaturalShrimp is a biotechnology aquaculture company that has developed and patented the first shrimp-focused commercially operational recirculating aquaculture system. Read more.
