Miami, Florida-based Blue Star Foods Corp., an integrated environmental, social and governance seafood company, has entered into a securities purchase agreement with Lind Global Fund II LP, an investment entity managed by The Lind Partners LLC.
Blue Star will issue and sell a convertible note in the principal amount of $5.75 million, which includes a 15 percent original issue discount and a five-year warrant to purchase an aggregate of one million 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 zero percent interest rate and a fixed conversion price of $5 per share, which is a 26 percent premium to the $3.97 closing price of BSFC on Jan. 24. 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 products, 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,” he said.
Newbridge Securities Corp. is acting as a financial advisor to the company.
Blue Star Foods Corp. 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 full grow-out salmon farm in North America.
For more information, visit bluestarfoods.com.
