US: Edible Garden acquires $12M of assets to expand R&D

Edible Garden has bought assets from a sustainable fish farming company in Fort Dodge, Iowa, previously owned by NaturalShrimp Farms Inc. They paid for these assets with $12 million worth of a new type of preferred stock from their company. Additionally, a partner of NaturalShrimp agreed to buy $3.5 million of this preferred stock with cash, and $3 million of that is being paid right away. This brings their total investment in Edible Garden's preferred stock to $15.5 million. With this purchase, Edible Garden will also receive two patents for eco-friendly water treatment technologies and a fully functioning shrimp farming facility.

The acquisition is expected to support multiple strategic initiatives at Edible Garden, including expanded R&D and warehousing. The Company intends to integrate the patented water treatment technology across its existing CEA operations, opening new possibilities for improving agricultural efficiency and sustainability. This development aligns with Edible Garden's Zero-Waste Inspired® mission and enhances the Company's vertically integrated model.

"This acquisition marks another exciting milestone in Edible Garden's evolution as a leader in sustainable agriculture," said Jim Kras, Chief Executive Officer of Edible Garden. "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. These innovations have the potential to optimize water use and reduce environmental impact—benefiting both our operations and the planet. It is a strategic fit that builds on everything we have been doing, from nanobubble research to our work with the EPA and FDA and now positions us to expand our R&D capabilities and potentially enhance our nutraceutical product development."

"This transaction significantly strengthens our balance sheet—without the need for additional debt—and increases shareholder equity, underscoring our commitment to a capital-efficient growth strategy. We believe the Iowa facility provides a scalable platform for advanced research, expanded herb production, and strategic warehousing in the Midwest, further reinforcing Edible Garden's position as a leader in sustainable food production."