The Bullish Case for Trans American Aquaculture (OTCM: GRPS)

Gold River Productions dba Trans American Aquaculture produces premium quality, farm-raised white shrimp, 100% free of antibiotics and hormones, and cultivated using safe and sustainable practices.

Using decades of experience in the shrimp aquaculture industry, our products are grown with our superior technology and our proprietary genetics which results in a superior fresh product always grown in the United States.

Operating out of the largest scale aquaculture farm in Texas, USA, the company utilizes over a century of proven industry experience, proprietary technology, expertise in premium genetic lineage development, and state-of-the-art facilities to provide our clients a superior product that they can count on.

The company trades on the OTC Markets under stock ticker GRPS.

Cervitude LLC has a long position in the company acquired through a consulting agreement to assist the company with investors relations, marketing and general business development. Cervitude LLC is bullish on the prospects of the company for the following reasons.

  1. Growing Market Demand: Shrimp is one of the most popular seafood products in the world, with global demand projected to continue to grow in the coming years. The United States is the world’s largest market for shrimp imports, which creates an opportunity for domestic producers like Trans American Aquaculture to capture a share of the market.  According the Brainy Insights[1], the Aquaculture Market Size in the US is set to reach $495.10 Billion USD by 2032, with a rise in consumption of seafood in general to propel growth.   Other reports suggest that the US Shrimp Market Size is projected to reach USD 85 Billion by 2030, growing at a CAGR of 9.5%[2].  With the market demand growing, larger producers have made major investments into shrimp farming abroad.  All in total, the Global farmed shrimp production is expected to hit record high next year[3] and US Shrimp farming is taking off.[4]
  2. Government & Private Sector Support: China aquaculture feed giant Haid is set to invest $1 billion into a massive shrimp farm[5] and recently the federal government awarded Pingree a $2 million investment to strengthen Maine aquaculture[6].  Realizing the demand for shrimp the Australian state gov’t injects $5m to boost aquaculture research, development[7].  The National Oceanic and Atmospheric Administration released its first-ever strategic plan for expanding “a resilient aquaculture industry” in the U.S. over the next five years.  In short, the NOAA backed the expansion of US aquaculture with bipartisan support.[8]
  3. Sustainable Practices: Consumers are increasingly concerned about sustainability and the environmental impact of their food choices[9]. Trans American Aquaculture has a commitment to sustainable and safe aquaculture practices that can resonate with eco-conscious consumers and investors.  A study[10] found that the farms with regenerative and sustainable practices were 78% more profitable than conventional plots. This increase in profitability was the result of two main factors: input costs and end markets.  Aquaculture is a key component of our seafood systems and is one of the most climate-friendly and resource efficient ways to achieve food security, economic, and environmental restoration outcomes.[11]
  4. Proprietary Genetics: Trans American Aquaculture has developed its own genetic lines that are superior to other genetic lines. This provides the company with a competitive advantage in terms of producing superior shrimp that can command a higher price point in the market.  The potential of fish and shellfish production to feed a growing global population could be significantly enhanced through advances in genetics and biotechnology.[12]  The application of genetics to the breeding and management of cultivable aquatic organisms is likely to result in considerable improvement as it has with domesticated mammalian and avian livestock. Because aquatic organisms are still largely undomesticated and relatively little is yet known about many basic features of their genetic constitution, genetic improvement studies have wider implications in aquaculture than in agriculture.[13]  These proprietary genetics help the Company lower the risk of shrimp production and diminish potential chances of shrimp dying during the farming process.
  5. Favorable Location: Trans American Aquaculture operates out of the largest scale aquaculture farm in Texas, USA, which provides the company with favorable location advantages, such as proximity to major markets and ease of transportation.  Their location is not only conducive to doing business in the USA but borders a large untapped market in Mexico and South America, which still currently import the majority of Shrimp from Asia[14].   Texas has the perfect combination of highly skilled talent and world-class schools that continue to meet the needs of businesses across all industries.[15]
  6. Experienced Management: The company’s founders and management team have extensive experience in the shrimp aquaculture industry, which can provide investors with confidence in the company’s ability to execute its business plan and deliver on its growth targets.  The founders are of generational experience with over 3 generations in the shrimp farming business.[16]  In addition, the COO has industry expertise with over 20 years of aquaculture experience and several University Degrees in Mariculture and Aquaculture.  The CEO also comes from a strong background in finance and operations working with several private and public companies on funding, operations and finance.[17]
  7. Best Aquaculture Practices Certification: Trans American Aquaculture is pursuing the Best Aquaculture Practices (BAP) certification, which can help the company demonstrate its commitment to sustainability and best practices in the industry.  BAP is the only aquaculture certification program in the world that certifies every step of the production chain.[18]
  8. Potential for Vertical Integration: Shrimp farming operations like Trans American Aquaculture have the potential to expand into downstream markets, such as processing and distribution, which can provide additional revenue streams and enhance the company’s competitive positioning.
  9. Untapped US Aquaculture Market:  The aquaculture market in the US, as it pertains the shrimp farming, is still “boutique,” but innovations are leading to greater production[19].  Currently, the United States imports at least 70 percent of its seafood[20] which eaves a huge opportunity for seafood producers in the USA to compete.
  10. International Initiatives: While the company is focused on production in the United States, it’s management has already begun to secure potential partnerships internationally for shrimp production.  Trans American Aquaculture and its Algerian partner, Aqua Continentale signed a Memorandum of Understanding on July 28 in Algiers to jointly develop an aquaculture farm in the Wilaya of Relizane that will produce up to 1,000 tons of shrimp for domestic consumption and export to Europe.[21] (See story on US Embassy in Algeria website)

The company’s facilities include an 1800 acre farm in Texas and production facilities onsite:

The company over the past month has outperformed industry participants:


See full report here:

[1] https://finance.yahoo.com/news/aquaculture-market-size-reach-usd-220000163.html

[2] https://www.globenewswire.com/en/news-release/2022/09/01/2508824/0/en/Shrimp-Market-Size-is-projected-to-reach-USD-85-Billion-by-2030-growing-at-a-CAGR-of-9-5-Straits-Research.html

[3] https://www.intrafish.com/shrimp/global-farmed-shrimp-production-expected-to-hit-record-high-next-year/2-1-1327042

[4] https://www.seafoodsource.com/news/aquaculture/shrimp-farming-taking-off-in-the-us

[5] https://www.intrafish.com/shrimp/china-aquaculture-feed-giant-haid-to-invest-1-billion-into-massive-shrimp-farm/2-1-1402675

[6] https://pingree.house.gov/news/documentsingle.aspx?DocumentID=4330

[7] https://www.undercurrentnews.com/2023/03/15/aussie-state-govt-injects-5m-to-boost-aquaculture-research-development/

[8] https://www.seafoodsource.com/news/aquaculture/noaa-backs-expansion-of-us-aquaculture-industry

[9] https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets

[10] https://www.forbes.com/sites/forbesfinancecouncil/2020/01/30/is-regenerative-agriculture-profitable/?sh=5ffed037cdf2

[11] https://www.seafoodsource.com/news/aquaculture/noaa-backs-expansion-of-us-aquaculture-industry

[12] https://thefishsite.com/articles/why-genetics-is-key-to-the-evolution-of-aquaculture

[13] https://www.sciencedirect.com/science/article/abs/pii/0044848681901502

[14] https://www.fao.org/in-action/globefish/market-reports/resource-detail/en/c/1633618/

[15] https://gov.texas.gov/business/page/why-texas

[16] https://transamaqua.com/

[17] Id.

[18] https://www.bapcertification.org/

[19] https://www.seafoodsource.com/news/aquaculture/us-ras-shrimp-farms-still-boutique-but-innovations-leading-to-greater-production

[20] https://www.seafoodsource.com/news/aquaculture/noaa-backs-expansion-of-us-aquaculture-industry

[21] https://dz.usembassy.gov/u-s-algerian-partnership-to-develop-a-shrimp-farm/



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