Key Takeaways
- Edible Garden acquired assets from NaturalShrimp Farms Inc., including a Fort Dodge, Iowa-based aquaculture facility and two patented water treatment technologies.
- The $15.5 million transaction includes $12 million in preferred stock issued to NaturalShrimp and $3.5 million in cash investment from its affiliate.
- The acquired technologies will be integrated into Edible Garden’s greenhouse operations to support sustainable water use and production efficiency.
- The facility will serve multiple functions including R&D, warehousing, and potential herb production.
- The deal strengthens Edible Garden’s balance sheet without incurring additional debt.
Edible Garden Acquires Aquaculture Facility and Patented Technologies from NaturalShrimp
Edible Garden AG Incorporated (Nasdaq: EDBL, EDBLW), a company specializing in controlled environment agriculture (CEA) and sustainably grown produce, announced the acquisition of select assets from NaturalShrimp Farms Inc., based in Fort Dodge, Iowa. The acquisition includes a fully operational shrimp farming facility and two patents related to environmentally friendly water treatment systems.
The transaction was structured as a $12 million preferred stock issuance to NaturalShrimp, along with a $3.5 million cash investment in preferred shares by a NaturalShrimp affiliate, $3 million of which has been immediately funded. The total value of the transaction stands at $15.5 million.
Patented Water Technology to Be Integrated Across Edible Garden Operations
Supporting Sustainable Agriculture and Zero-Waste Initiatives
The water treatment technologies acquired in the deal are expected to be integrated into Edible Garden’s existing greenhouse operations. The technologies support the company’s Zero-Waste Inspired® mission by enhancing water efficiency and reducing environmental impact.
Jim Kras, CEO of Edible Garden, stated: “By purchasing the assets of NaturalShrimp, we are not only gaining a highly innovative, sustainable aquaculture facility, but also acquiring patented water treatment technologies that can be deployed across our greenhouse operations.”
This integration could also support further development in areas such as nanobubble technology, nutraceutical products, and regulatory research in collaboration with agencies like the EPA and FDA.
Strategic Growth Without Additional Debt
Enhancing R&D and Expanding Infrastructure
The Fort Dodge facility is expected to serve as a scalable platform for research and development, expanded herb production, and warehousing. According to the company, these enhancements are part of a broader effort to strengthen its vertically integrated CEA model and capitalize on Midwest distribution opportunities.
“This transaction significantly strengthens our balance sheet—without the need for additional debt—and increases shareholder equity,” said Kras.
The asset acquisition supports Edible Garden’s approach to capital-efficient growth and reinforces its operational footprint in sustainable food production.
Transaction Advisory and Financial Structure
Maxim Group LLC acted as the exclusive financial advisor to Edible Garden in connection with the acquisition. The preferred stock structure provides Edible Garden with immediate capital and long-term strategic assets, while maintaining operational flexibility and avoiding new borrowing.
The company has not disclosed the timeline for full integration of the new technologies and facility functions but indicated that the expansion will support ongoing innovation in sustainable agriculture.
