Blue Star Foods has announced its Q1 2023 operating results. They show a slower start than expected by the company, although they perceived a higher flow for Q2 2023. Despite this, the company ended the financial period with earnings data of USD 1.9 million (EUR 1.76 million), an increase in RAS of USD 0.6 million (EUR 0.56 million), and an annual supply agreement of USD 4 million with Just Food for Dogs.
John Keeler, Chairman and CEO of Blue Star, commented, "We got off to a slow beginning for 2023, but started to see some increase in demand and orders towards the end of the first quarter. Our RAS business continues to perform well and, although our 10X RAS expansion plans are taking longer than previously expected, remain poised for expansion. We hope to have specific details on our RAS expansion to share over the next few months."
This reference to the slow start is because, despite earnings of USD 1.9 million (EUR 1.76 million), this represents a decrease of 64% compared to last year. As the company explained, this change is mainly due to the drop in weight sold during Q1.
However, not only the financial ones stand out, but also the business ones, such as Just Food For Dogs. Among them, one in which the company raised USD 1.8 million (EUR 1.67 million) with Aegis Capital Corp. In an underwritten public offering, and also the ESG 2022 report was included in two of the most prominent sustainability reporting standards.
Keeler added that "[After] the end of the first quarter, we raised $150,000 in equity priced at $0.20 with an institutional fund, which has also agreed to purchase up to an additional $10,000,000 of the Company's common stock, with the timing, exact dollar amounts and pricing up to the Company. In addition, we entered into a non-binding term sheet with Lind Global Fund II, L.P. that contemplates the Company entering into a new securities purchase agreement with Lind."
The Nasdaq (National Association of Securities Dealers Automated Quotations) is one of the most important and recognized stock exchanges in the world. Now it was considering the possibility of delisting the company's shares. Regarding this Keeler explained that the company "have requested the hearing before the Nasdaq Hearings Panel. The Company's request for a hearing will stay any suspension or delisting action by Nasdaq pending the Panel's final decision. At the hearing, the Company will provide its plan to regain compliance with Nasdaq's Minimum Bid Price Requirement, which includes but is not limited to an already shareholder-approved reverse stock split if necessary. We look forward to the remainder of 2023 and look forward to providing updates on our progress."
Headquartered in Miami, Florida, Blue Star Foods Corp. is an integrated ESG seafood company that processes, packages, and sells high-value seafood products. The company claims to use best-in-class technology in both resource sustainability management and traceability, as well as environmentally friendly packaging. It also owns and operates the oldest continuously operating RAS full grow-out salmon farm in North America, located in British Columbia.