Miami, Florida, U.S.A.-based Blue Star Foods has entered into a securities-purchase agreement with Lind Global Fund, an investment entity managed by The Lind Partners.
New York City-based The Lind Partners has directed USD 850 million (EUR 755 million) in total value growth capital to small- and mid-cap companies publicly traded in the U.S., Canada, Australia, and the U.K., with 70 total direct investments.
As part of the agreement, Blue Star is issuing and selling a convertible note with a principal amount of USD 5.75 million (EUR 5.09 million), which includes a 15 percent original issue discount and a “five-year warrant to purchase an aggregate of 1,000,000 shares of common stock” that is exercisable at USD 4.50 (EUR 3.98).
Key terms of the 24-month note are a zero-percent interest rate and a fixed conversion price of USD 5.00 (EUR 4.42) per share – a premium to the Blue Star’s closing price of USD 3.97 (EUR 3.51) as of Monday, 14 January, the company said.
“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,” The Line Partners Managing Director Phillip Valliere said. “Lind is pleased to invest in Blue Star to support its strategic growth plans and looks forward to being a part of its future.”
Blue Star Foods Chairman and CEO John Keeler said the new capital will allow the company to produce more product in order to fill orders in North America, where the company has seen “a pretty significant jump in demand.”
“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,” Keeler said.
Blue Star Foods has been on an acquisition streak, acquiring Gault Seafood in December 2021 and Taste of BC Aquafarms in June 2021. The company also closed a USD 4 million (EUR 3.5 million) public offering in November 2021, an announcement that came on the heels of Taste of BC announcing it had selected a new site for a recirculating aquaculture system facility.
