Miami, Florida, U.S.A.-based Blue Star Foods has closed an underwritten public offering the company said it netted USD 1.8 million (EUR 1.6 million) in gross proceeds.
Blue Star announced the offering on 10 February, 2022. The offering consisted of 9 million shares of common stock and pre-funded warrants to purchase common stock at USD 0.20 (EUR 0.18) per share. The company also announced it granted Aegis Capital, the company that underwrote the offering, a 45-day option to purchase up to an additional 1,250,000 shares of common stock and pre-funded warrants at the public offering price.
If Aegis Capital had taken up the offer, it would have increased the gross proceeds of the offering to USD 2 million (EUR 1.8 million), but according to a 14 February release, it did not do so.
Blue Star said it will use the net proceeds from the offering for “general corporate purposes” including operating expenses and capital expenditures.
“The company may also use a portion of the net proceeds to acquire or make investments in businesses, products, and offerings, although they do not have agreements or commitments for any material acquisitions or investments at this time,” Blue Star said.
The company made the announcement of the public offering on 10 February. On 9 February, the company’s stock was trading on Nasdaq Stock Exchange at USD 0.36 (EUR 0.33) per share, but on 10 February the stock closed at a price of USD 0.19 (EUR 0.17). The price continued to fall from there, and as of 3:40 p.m. on 14 February, the stock was trading at USD 0.16 (EUR 0.14).
In early February, Blue Star entered into a service agreement with ShareIntel-Shareholder Intelligence Services to combat any potential illegal short selling of its stock. According to Blue Star Foods Chairman and CEO John Keeler, based on the trading pattern of the company’s stocks it was concerned that it may have been the target of a market manipulation scheme.
“We are committed to investigating and exposing any wrongdoing,” Keeler said.
Photo courtesy of Blue Star Foods
