Shareholder Update

Writtern by Charlotte Luer

Dear Shareholder:

November 1, 2017

We are happy to report that Aqua Farming Tech, together with its parent company New Global Energy Inc., was successful in securing a loan that is being used to make the capital improvements to the farm and provide the working capital required to reach profitable production targets and meet our long term goals. The capital improvements are highlighted as follows:

  1. Feed Mill: Manufacturing our own feed has been shown to save about 40% of the cost of fish feed, compared to that purchased from 3rd parties. We expect that improvements currently underway will support increased output of self manufactured feed, which in turn supports increased fish production at reduced production costs.
  2. Hatchery Improvement: With a view towards maximizing hatchery output, certain improvements are being made. The indoor hatchery has been reroofed and resided. New moisture resistant lighting has been installed and windows have been added to allow for natural lighting. The exterior hatchery structure has been enclosed with a shade structure to allow for a better work environment and improved bio security by reducing wind transport dust which can contain bacteria that can contaminate tanks. Having an upgraded nursery facility positions the farm to maximize its production of fry which is critical to reaching and maintaining maximum production. Producing tilapia involves sustained, robust hatchery operations that generate a continuous supply of fish that are then grown out and sold into the market. Increasing production levels of market size fish requires the hatchery (and brood stock) be kept in top condition.
  3. Aeration System Improvement: The proprietary application of specific aeration technology has demonstrated that it produces increased oxygen levels in the water, while significantly reducing heat loss as compared with conventional paddle wheel aeration. During winter months, nighttime temperatures drop, requiring the farm to pump geothermally heated water from the farm’s wells to keep the fish ponds warm. Conventional paddle wheel aeration has a cooling effect on the water. By reducing heat loss, the new aeration technology reduces the volume of hot water that is necessary to be pumped from the farm’s wells to keep the ponds warm, which in turn lowers both water and electric bills. At the same time, the new technology by increasing levels of oxygen in the pond water, should help the fish to grow faster. This is a major initiative.
  4. Netting/Catwalks M Tanks Mecca: Netting will increase productive capacity at the Mecca farm. During last summer, only 2 of the 5 fish ponds at Mecca were in use. Netting 3 additional tanks will increase productive capacity by 150%. This expenditure will cover three 240’ diameter masonry fish ponds with nets and also allow us to build “catwalks” in these ponds. A catwalk is a dock-like walkway built from the edge of the circular pond out to its center. These key improvements accomplish two things: 1) The nets protect the fish from bird predation, enabling the idle ponds to be placed back into production; and, 2) The catwalks facilitate more efficient management of the pond.

These advancements comprise key components of the platform for expansion of farm production. We are also recruiting additional farm management personnel to assist Rocky French, further enhancing our production capabilities and the potential for sustained revenue growth. We are conducting a thorough search to select the right person for this key position and expect to be able to make an announcement in this regard soon.

We’ve also taken this opportunity to improve our financial management and, as such, have entered into an agreement with a financial consulting firm, GMSP Corporate Finance Inc., to provide the Company with business planning, strategic planning, corporate finance, merger/acquisition support and CFO services. GMSP’s CEO is Michael Iscove, an experienced financial executive and former public company CFO and we’re are pleased to announce that, through GMSP, he will be the one providing these services and providing acting Chief Financial Officer services for the Company. Once we’re able to complete the required regulatory steps, he should be able to assume a formal role as CFO of New Global Energy. Since we began working with him, Mr. Iscove has assisted us in recruiting new accounting personnel hired by New Global Energy.They are working quickly to enhance our accounting and reporting capabilities. Mr. Iscove has begun a review and started improving the Company’s financial systems and procedures so that all aspects of the Company’s business can be better tracked and reported to management and the Company’s auditors.

We believe that this new financial team will facilitate producing the financial information necessary to expedite regulatory reporting. Initial emphasis will be to bring the Company current in its quarterly and annual filings with the Securities and Exchange Commission which will ensure that the Company in better positioned to raise any additional debt or equity financing needed to achieve our goals.

Management believes New Global is on the path to success now and will be able to build a Company that demonstrates strong revenue growth, competitive margins and consistent profits.


Perry West CEO

Safe Harbor Statement

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company’s ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company’s suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.