Miami, Florida, U.S.A.-based Blue Star Foods has entered into a service agreement with ShareIntel-Shareholder Intelligence Services to combat any potential illegal short selling of its stock.
Blue Star Foods is facing the delisting of its stock from the Nasdaq Stock Exchange if it doesn’t manage to raise its stock price back above USD 1.00 (EUR 0.93) by 16 May, 2023. The company must maintain that price for at least 10 consecutive business days, and the company could request a 180-day extension on the deadline. Its stock price is currently hovering around USD 0.35 (EUR 0.33) per share.
“Based on the trading pattern of the stock, we are concerned that our company may have been the target of a market manipulation scheme involving illegal short selling of our stock over the past year, and we are committed to investigating and exposing any wrongdoing,”
Short selling involves borrowing a security and selling it on the open market under the belief that the price will fall, so the borrower can later buy it back for less money and profit from the difference.
Keeler said ShareIntel will enable the company to counter any future efforts to illegally manipulate the company’s stock.
“By leveraging ShareIntel’s patented processes and proprietary analytics, we will be able to find reporting anomalies among market makers, banks, broker-dealers and clearing firms,” Keeler said. “Blue Star has formed a board committee task force for this issue to pursue the necessary actions to protect the interest of its shareholders.”
Blue Star Foods posted a net loss of of USD 3.7 million (EUR 3.4 million) in Q3 2022. It has not yet released its Q4 or FY2022 results.
Photo courtesy of Blue Star Foods
