Shares of NaturalShrimp Incorporated (OTCMKTS:SHMP) bounced off support Tuesday. Will it hold?
SHMP closed Tuesday at .50 down .05 off 9% on the day. Trading ranged between the open at .55 and the low of .44. Volume was 6.1 million shares on 1440 trades.
SHMP Files 8K
SHMP filed an 8K Tuesday morning. Highlights include:
Item 1.01. Entry into a Material Definitive Agreement.
As previously disclosed in the Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) by NaturalShrimp Incorporated (the “Company”) on April 15, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with an accredited investor (the “Purchaser”) on April 14, 2021, for the offering of (i) $5,000,000 worth of common stock, par value $0.0001 per share, of the Company (“Common Stock”), at a per share purchase price of $0.55 per share; (ii) common stock purchase warrants to purchase up to an aggregate of 10,000,000 shares of Common Stock, which are exercisable for a period of five years after issuance at an initial exercise price of $0.75 per share, subject to certain adjustments, as provided in the warrants; and (iii) 1,000,000 shares of Common Stock, as commitment shares.
Pursuant to the Purchase Agreement, on May 5, 2021, the Purchaser purchased an additional 15,454,456 shares of Common Stock (the “Shares”) at a per share purchase price of $0.55 per share (the “Second Closing”). Lake Street Capital Markets, LLC (“Lake Street”) acted as a financial advisor to the Company in connection with the Second Closing. Lake Street is entitled to a fee equal to 3% of the gross proceeds raised in the Second Closing, or an aggregate of $255,000. The number of shares of common stock outstanding immediately after the Second Closing was 591,692,455 shares. The Company expects to receive approximately $8,200,000 in net proceeds from the Second Closing and after deducting the fees and other estimated offering expenses payable by the Company. The Company expects to use the net proceeds from the Second Closing for working capital and for general corporate purposes.
SHMP ran from .15 in December 2020 to a high of .89 in February.
Support at the .44 price was resistance during the move up in December and is also the 61% Fibonacci retracement level for the whole move.
Potential pivot areas to keep an eye on are .586 .623 and .733 above and .476 .403 and .293 below.
While SHMP did hold the line today overall there appears to be more selling pressure than buying. If SHMP breaks below the .44 area, things could get ugly.