Blue Star Foods Will Receive $5 Million Investment from The Lind Partners

Rhea-AI Summary

Blue Star Foods Corp. (Nasdaq: BSFC) has entered into a securities purchase agreement with Lind Global Fund II LP to issue a convertible note worth $5,750,000, inclusive of a 15% original issue discount. This secured 24-month note has a 0% interest rate and a fixed conversion price of $5.00 per share, representing a 26% premium over the January 24 closing price of $3.97. The funds will enhance working capital, supporting increased production to meet rising demand across North America, according to CEO John Keeler.

Positive

• Secured $5.75 million in funding through a convertible note.
• Funding will increase working capital to ramp up production.
• The 0% interest rate on the note is favorable for cash flow management.
• CEO highlights significant demand growth in North America.

Negative

• None.

Increase in Working Capital Will Enable the Company to Purchase More Supply and Ramp Revenue

Miami, FL, Jan. 25, 2022 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., (Nasdaq:BSFC) (“Blue Star” or “BSFC”), an integrated Environmental, Social, and Governance (ESG) seafood company, today announced that it has entered into a securities purchase agreement with Lind Global Fund II LP, an investment entity managed by The Lind Partners, LLC (together, “Lind”), pursuant to which Blue Star will issue and sell a convertible note in the principal amount of $5,750,000, which includes a 15% original issue discount, and a five-year warrant to purchase an aggregate of 1,000,000 shares of common stock exercisable at $4.50. The transaction is subject to the satisfaction of customary closing conditions.

Key terms of the secured 24 month note include a 0% interest rate and a fixed conversion price of $5.00 per share, which is a 26% premium to the $3.97 closing price of BSFC on Monday, January 24, 2022. Principal payments are due in 18 monthly installments beginning 180 days after issuance. Under the terms of the note, Blue Star has the right to make principal and interest payments in the form of either cash or common stock.

“Sustainably farmed and harvested seafood is in extremely high demand. Blue Star has demonstrated exceptional growth, to date, and we are excited to see what the future will bring. Lind is pleased to invest in Blue Star to support its strategic growth plans and looks forward to being a part of its future,” said Phillip Valliere, Managing Director at The Lind Partners.

“This additional working capital allows us to produce more product, aiming to fulfill our distributor partner orders in North America, where we are seeing a pretty significant jump in demand,” said John Keeler, Chairman and CEO of Blue Star. “We attribute this demand to several factors, including the normalizing of the economy, but also our ability to be a trusted partner to some of our customers in getting them product. I think we are being rewarded for our ability to deliver and we appreciate greatly the vote of confidence.”

Newbridge Securities Corporation is acting as a Financial Advisor to the Company.

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.

About The Lind Partners

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind’s funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity offerings and selectively buy on market. Having completed more than 100 direct investments totaling over US$1 Billion in transaction value, Lind’s funds have been flexible and supportive capital partners to investee companies since 2011.

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, 2020, 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.

For more information, please contact:
Christine Petraglia | TraDigital IR
M: (917) 633-8980
Email: christine@tradigitalir.com

FAQ

What is the purpose of the securities purchase agreement by Blue Star Foods (BSFC)?

The agreement aims to secure $5.75 million in funding to enhance working capital, enabling increased production and fulfillment of distributor orders.

What are the terms of the convertible note issued by Blue Star Foods (BSFC)?

The convertible note is for $5.75 million with a 0% interest rate and a conversion price of $5.00 per share.

How does the new funding affect Blue Star Foods' (BSFC) growth plans?

The funding allows Blue Star to meet rising demand, particularly in North America, by boosting production capabilities.

What is the significance of the 26% premium in the convertible note for Blue Star Foods (BSFC)?

The 26% premium on the conversion price indicates potential upside for investors if BSFC's stock performs well.