Blue Star Foods Corp. Provides RAS Business Update

Rhea-AI Summary

Blue Star Foods Corp. (BSFC) has announced its plans to develop the first full-scale commercial Salmon Recirculating Aquaculture System (RAS) in British Columbia. Following the acquisition of Taste of BC Aquafarms, Inc. (TBC), BSFC is in final negotiations for a site and aims to start the permitting process soon. Currently, they operate a facility in Nanaimo, with production exceeding targets and 98% of fish meeting market specifications. The company anticipates producing 21,000 tons of Pacific Salmon by 2028 and is applying for Nasdaq Capital Market listing.

Positive

• Acquisition of TBC enhances resources and expertise in seafood production using RAS technology.
• Current facility in Nanaimo exceeds production targets with high-quality output.
• Plans to produce approximately 21,000 tons of Pacific Salmon by 2028 indicate strong growth potential.
• Unique position as the only producer meeting profitability in the Salmon RAS sector.

Negative

• None.

Advancing development of first full-scale, commercial land-based Salmon Recirculating Aquaculture System in British Columbia

Miami, Florida, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., (OTC: BSFC) (“Blue Star” or “BSFC”), an integrated Environmental, Social, and Governance (ESG) seafood company, today provided an update on its efforts to develop the first full-scale commercial Salmon RAS operation in British Columbia.

BSFC acquired Taste of BC Aquafarms, Inc. (TBC) in June of 2021, and this division has completed its evaluation of several potential sites for its initial facility and is in final negotiations to secure its first choice, which is already zoned for aquaculture. TBC expects to finalize site negotiations in Q4 barring any unforeseen circumstances. Development plans are being finalized, and the company expects to submit concept plans to the Department of Fisheries and Oceans to begin the permitting process by next month.

The company is currently operating a facility in Nanaimo on Vancouver Island where more than 50 cohorts of an approximate 10,000 fish each have been stocked. All cohorts have grown at or beyond targets since September 2019. Production at this facility for 2020 was 103% of the company’s target of 100 tons of fish with more than 98% of that production meeting or exceeding market specifications for size, taste, texture and other quality markers, such as “sushi grade.” In 2021, weekly harvests are being maintained with similar results although market demand continues to outpace supply.

John Keeler, Chief Executive Officer of Blue Star Foods, Corp., stated, “The acquisition of TBC earlier this quarter provided us with the talent, resources and experience to accelerate our seafood production through Recirculating Aquaculture Systems (RAS), which we believe is the future of our industry. Importantly, we have achieved success at the existing facility and are positioned to leverage TBC’s proven and scalable model to develop large-scale production facilities that will target production of approximately 21,000 tons of Pacific Salmon by 2028.”

Steve Atkinson, Managing Director of Taste of BC Aquafarms., commented, “We are moving rapidly to advance our plans for the first full-scale commercial operation of a RAS in British Columbia, which for a long-time, has been our preferred location given its long history in Salmon Aquaculture and supporting infrastructure. The Canadian federal government declared their intention to transition Ocean-based Net Cage Salmon Farming on to land by 2025. They have already cancelled licenses of approximately 30% of ocean-based production effective 2022. This, coupled with the increasing consumer demand for high-quality, sustainably sourced seafood, have created an attractive political and business climate for advancing our plans.”

Atkinson added, “To date, we are the only producer in the Salmon RAS sector that has been able to predictably raise high-quality salmon at a profit. Importantly, we now have a proven blueprint for this success that is repeatable and will enable us to further scale our business. We are leveraging the lessons learned to develop additional farms over the next several years. Each farm will consist of identical modules that are currently being designed using the extensive knowledge gained in the proof of our existing facility. Our experience has demonstrated that farms with annual production of 1,500 Tons are ideal. This gives advantages of scale, biosecurity, mitigation of risk and ease of finding suitable sites along with operational efficiencies. Early entry into this emerging market with a proven, scalable model is instrumental to our success thus far and we believe will enable us to outperform others in the industry.”

BSFC has applied to list its common shares on the Nasdaq Capital Market and this application is currently pending approval.

About Blue Star Foods Corp.

Blue Star Foods Corp. is an integrated ESG seafood company that processes, packages and sells high-value seafood products. The Company believes it utilizes best-in-class technology, in both resource sustainability management and traceability, and ecological packaging. The Company also owns and operates the oldest continuously operating Recirculating Aquaculture System (RAS) full grow-out salmon farm in North America. The company is based in Miami, Florida, and its corporate website is: www.bluestarfoods.com.

Safe Harbor

This press release contains statements, which may constitute “forward-looking statements”. Those statements include statements regarding the intent, belief, or current expectations of the Company and members of its management team, as well as the assumptions on which such statements are based. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that may cause actual results to differ from those anticipated are discussed throughout the Company’s reports filed with Securities and Exchange Commission which are available at www.sec.gov as well as the Company’s web site at http://www.bluestarfoods.com. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contacts

Brett Maas of Hayden IR
Email: brett@haydenir.com
Office: (646) 536-7331

FAQ

What is Blue Star Foods Corp. (BSFC) planning in British Columbia?

Blue Star Foods Corp. is developing the first full-scale commercial Salmon Recirculating Aquaculture System (RAS) in British Columbia.

What are the production targets for Blue Star Foods by 2028?

Blue Star Foods aims to produce approximately 21,000 tons of Pacific Salmon by 2028.

What recent acquisition did Blue Star Foods make?

Blue Star Foods acquired Taste of BC Aquafarms, Inc. in June 2021 to enhance its seafood production capabilities.

How has Blue Star Foods' current fish production performed?

The current facility in Nanaimo has exceeded production targets, with over 98% of fish meeting market specifications.

Is Blue Star Foods applying for a stock listing?

Yes, Blue Star Foods has applied to list its common shares on the Nasdaq Capital Market, pending approval.