Investment Opportunity
The Investment
We’re building the world’s most productive shrimp facility in Madison, South Dakota and the only FDA-registered USP (United States Pharmacopeia) grade GMP-certified US producer of Chitosan. Chitosan (KY-tuh-sin) is a biopolymer produced from the chitin found in the exoskeletons of shrimp. Uncontaminated Chitosan with a traceable point of origin is in high demand in the medical and pharmaceutical industries. With our proprietary technology and zero-antibiotic farming practices, trū Chitosan is our most valuable product.
Full-scale production facility with three unique revenue streams:
SHRIMP, USP-GRADE CHITOSAN AND PET FOOD INGREDIENT
The Proof
Not only have we pioneered the development of a breakthrough, scalable shallow-water indoor aquaculture platform that enables controlled and predictable production of shrimp and shrimp shell tissue, we have also successfully paved the way for full commercialization of all 3 product lines with multiple Letters of Intent and distribution channels in place. Through scientific validation, production optimization and letters of intent acquisition en route to mass commercialization, we have made extensive headway in mitigating the risk of this fundraising round. The team has also successfully pre-sold all three product lines (trū Shrimp, trū Chitosan, trū Protein) from the future Madison facility.
Overcoming Objections
- Is Madison Bay Harbor too big and will it require too much capital?
- Madison Bay Harbor is planned to be a 200,000+ sq foot, bio-secure facility, on a 43-acre campus, and is expected to be the world’s largest, most advanced, and most productive indoor shrimp installation.
- Expected annual production:
- 1.6MM lbs. HOSO shrimp (980k lbs. processed)
- Raw tissue material for 4,700 kg of chitosan
- 500,000 lbs. pet food ingredient
- Can you sell the Shrimp?
- January 2021 announced a Letter of Intent with Gordon Food Service for a 10-year exclusive distribution of trū Shrimp in U.S. & Canada
- Is this an unproven, New-To-The-World Technology?
- Proven Proprietary Technology: The Tidal Basin®
- Harbor Tidal Basins; 585’ long x 12’4” wide x 14” average depth
- The Tidal Basin® technology and its automated features enable shrimp to be predictably grown at far greater densities than conventional pond methods
- Vertical Farming in shallow water enables stacking to nine high
- Patents exclusively licensed from Texas A&M University combined with the Company’s innovations
- Is the Chitosan opportunity real?
- Expected $33.9MM annual revenue
- Letter of Intent with Chitogen
- Until now, only a minimal supply of chitosan with the quality and purity required for internal medicine applications has been available for use. With our proprietary technology and zero-antibiotic farming practices, trū Chitosan has met the strict regulatory standards necessary to become the only USP-NF conforming chitosan supply in the United States.
- Is the Pet Food opportunity real as well?
- Expected $4.7MM annual revenue
- Letters of Intent for 20% of the production with JAC Pet Nutrition and Sana
- Over the last decade, high-protein pet food has quickly gained market prominence over those based on grains or meat byproducts. Within that market, many experts recommend choosing food that uses only one type of protein to minimize digestive/allergenic complications. As a result, many pet owners are looking for the “best” protein source in their food. Using high-quality shrimp protein from our production and processing waste stream, we are able to offer a single-source pet food ingredient with great benefits—and the delicious taste of shrimp that any pet will love.
- Where will you get the Debt?
- $82MM secured Debt
- TTSC has secured term sheets for loans guaranteed through the US Department of Agriculture (USDA).
- Feasibility studies have been completed and due diligence is in the final stages.