Miami, Florida, U.S.A.-based Blue Star Foods has criticized the actions of Steven Atkinson, the owner of the land that its Taste of B.C. Aquafarms (TOBC) recirculating aquaculture system (RAS) farm is on in Nanaimo, British Columbia, Canada.
Former TOBC Founder Steve Atkinson and his wife, Janet Atkinson, landlords of the property, terminated TOBC’s lease on 15 July after notifying the company on 8 July that the company would have to vacate the premises.
Atkinson told SeafoodSource Blue Star rarely paid its rent on time since it acquired TOBC in 2021, failed to maintain insurance, and failed to perform regular maintenance and upkeep on the facility.
On 16 July, TOBC filed a petition in the Supreme Court of British Columbia seeking a declaration that its leases remain valid and that it should be permitted to remain in possession of the property.
In a 17 July press release, Blue Star condemned Atkinson for “his egregious actions that have disrupted farm operations and violated rights as lessee under the land lease agreement.”
TOBC applied to have the petition heard on an urgent basis, but the Atkinsons wrote to TOBC to confirm they will not be taking any steps to reenter the property without first providing adequate notice, according to the press release. The lawyers said the Atkinsons will not change the locks or otherwise prevent TOBC from accessing the lands in any way without giving adequate notice to the company.
Additionally, the lawyers for the landlord confirmed that all rents have been paid to date.
“As a result of these statements, the Supreme Court of British Columbia determined that the matter was no longer urgent. The court declined to set an accelerated schedule for the hearing of the petition. It will be heard in the ordinary course,” TOBC said.
Blue Star Foods complained in its release of Atkinson’s recent behavior violating his promises not to interfere with the farm’s operations.
“Steve Atkinson engaged in a series of hostile acts, including unauthorized entry onto the property, refusal to allow TOBC's security personnel access, and verbal aggression toward TOBC personnel, security staff, and maintenance contractors,” Blue Star said. "Furthermore, Atkinson resorted to vandalism by forcibly removing TOBC's security cameras and ordering the killing of fish on the farm, prompting TOBC to immediately report the incident to the B.C.'s Society for the Prevention of Cruelty to Animals ... and safeguard TOBC’s fish biomass.”
Blue Star said despite the “unwarranted disruptions,” it will “uphold its commitment to business as usual, ensuring the continued growth and harvest of fish.
“TOBC stands firm in denouncing Steven Harold Atkinson for his unlawful interference, aggressive behavior, and disregard for contractual obligations,” Blue Star said. "The company remains resolute in seeking justice through legal channels and urges for a swift resolution to safeguard its operations and uphold the integrity of its business practices.”
In a 18 July statement sent to SeafoodSource, Atkinson said the matter is now an issue for the legal system to decide.
"While the landlord takes issue with much of the content of and apparent motivation behind TOBC’s 17 July press release, the lease dispute is now a matter of a court proceeding commenced by TOBC,” Atkinson said. “Accordingly, the landlord does not consider it proper or appropriate to debate the parties’ respective conduct, lawful and unlawful, through public media and press releases.”
In an effort to shore up its finances, Blue Star Foods is increasing the amount of shares of common stock it can sell, up to USD 5.38 million (EUR 4.9 million).
In a 12 July Securities and Exchange Commission (SEC) prospectus, Blue Star said that the aggregate market value of its outstanding common stock held by non-affiliates, or public float, was approximately USD 16.1 million (EUR 14.8 million) based on nearly 2.4 million shares of outstanding common stock.
“In no event will we sell securities in a public primary offering with a value exceeding one-third of our public float in any 12-month calendar period so long as our public float remains below USD 75 million [EUR 69 million],” the company said.
