Blue Star Foods Provides Shareholder Update

Rhea-AI Summary

Blue Star Foods Corp. (BSFC) provides a shareholder update, reporting $5.1 million in year-to-date 2023 revenues with declining quarterly losses. The company paid off convertible debt, reducing debt net of discounts to $0.9 million and maintaining $4.1 million in cash, inventory and A/R. With 14.4 million shares outstanding, they aim to return to revenue growth and profitability, exploring strategic acquisitive and organic growth opportunities.

Positive

• Reduced debt net of discounts to $0.9 million and maintains $4.1 million in cash, inventory and A/R
• Exploring strategic opportunities for growth through acquisitive and organic means

Negative

• Year-to-date 2023 revenues of $5.1 million were lower than expected
• Delayed salmon harvest and lower quarterly revenue due to equipment repair

Evaluating Several Strategic Acquisitive and Organic Growth Opportunities

Miami, FL, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., (“Blue Star,” the “Company,” “we,” “our” or “us”) (NASDAQ: BSFC), an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS), is pleased to provide a Shareholder Update, from its Chairman and Chief Executive Officer John Keeler.

To the Shareholders of Blue Star Foods Corp.:

I write to you today with gratitude, pride and excitement. Gratitude and pride for the dedication and support of our employees, partners and shareholders in our accomplishments to date, and great excitement for the value I see for us in the path ahead. Our Quarterly Report 10Q was filed with the U.S. Securities and Exchange on November 20, 2023.

While our year-to-date 2023 revenues of $5.1 million were not as high as expected, our quarterly losses have been declining throughout the year. Additionally, we paid off convertible debt, which had caused derivative accounting warrants liability on our balance sheet, as that reduced debt goes back to increasing our equity. Importantly, those warrants liabilities reserves are not related in any way to the cash operations of the Company. The previously taken steps of reducing our corporate and operating expenses and streamlining our business has improve our financial condition. Of note, we have significantly reduced our cash burn, substantially reduced the debt net of discounts to $0.9 million and currently maintain $4.1 million in cash, inventory and A/R. We could buy our current market capitalization with board consent. We currently have 14.4 million shares outstanding.

Now turning to our business, we continue to make progress with our RAS segment, highlighted by our option to purchase land in South Carolina for our expansion. Our recently reported quarterly revenue was lower than expected due to us delaying our salmon harvest for two months. This delay was due to our Ozone machine, which is used to flavor our fish, being offline for repair. We have since replaced equipment in the purge tanks and initiated weekly harvest since October 1.

Overall, management is focused on returning to revenue growth and profitability. We continue to explore strategic opportunities for growth that are both acquisitive and organic, as we recognize we need to be of larger size in order to build shareholder value.

If you have any questions, please see our filings with the SEC and feel free to email us at investors@bluestarfoods.com.

Sincerely,
John Keeler
Chairman and Chief Executive Officer

About Blue Star Foods Corp. (NASDAQ: BSFC)

Blue Star Foods Corp. an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS) 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: https://bluestarfoods.com

Forward-Looking Statements:

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Risks concerning the Company’s business are described in detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contacts:
investors@bluestarfoods.com

FAQ

What are Blue Star Foods Corp.'s (BSFC) year-to-date 2023 revenues?

Blue Star Foods Corp. reported year-to-date 2023 revenues of $5.1 million.

What is Blue Star Foods Corp.'s (BSFC) current debt situation?

The company reduced debt net of discounts to $0.9 million and maintains $4.1 million in cash, inventory and A/R.

How many shares does Blue Star Foods Corp. (BSFC) have outstanding?

Blue Star Foods Corp. currently has 14.4 million shares outstanding.

What strategic opportunities is Blue Star Foods Corp. (BSFC) exploring for growth?

The company is exploring both acquisitive and organic growth opportunities to build shareholder value.

Why was there a delay in Blue Star Foods Corp.'s (BSFC) salmon harvest?

The delay was due to an offline Ozone machine used to flavor the fish, which has since been replaced.