Blue Star Foods Issues Shareholder Letter from CEO
Balance Sheet Improvement by 50% Reduction in Liabilities Year-Over-Year
Miami, FL, Oct. 14, 2024 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., ("Blue Star," the "Company," "we," "our" or "us") (NASDAQ: BSFC), an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS), today announced that its Chairman and CEO John Keeler provided the following letter to shareholders.
Blue Star Foods Corp remains committed to transparency and integrity. As to the allege increased in debt levels, recently publish in a seafood trade publication, herein below is a comparative table of Blue Star liabilities quarter ending June 30, 2024, versus same period 2023. Which shows a 50.4% reduction in total liabilities and strengthening its balance sheet by $4,630,557 in Shareholder equity.
| CURRENT LIABILITIES | 6/30/24 | 6/30/23 | (Decreased by %) | |||||||||
| Accounts payable and accruals | $ | 839,494 | $ | 1,246,465 | (33 | %) | ||||||
| Customer refunds | $ | 107,587 | ||||||||||
| Deferred income | — | $ | 48,170 | (100 | %) | |||||||
| Current Maturities of long-Term debt, net of discounts | $ | 2,250,343 | (100 | %) | ||||||||
| Current maturities of lease liabilities | $ | 35,852 | $ | 52,657 | (32 | %) | ||||||
| Current maturities of related party long-term notes | $ | 100,000 | $ | 275,000 | (64 | %) | ||||||
| Loan payable | $ | 829,754 | $ | 514,711 | 39 | % | ||||||
| Related party notes payable - subordinated | $ | 44,038 | $ | 830,339 | (95 | %) | ||||||
| Derivative liability | $ | 484,350 | $ | 430,402 | 13 | % | ||||||
| Warrants liability | $ | 550 | $ | 116,247 | (99.9 | %) | ||||||
| Other current liabilities | $ | 790,881 | $ | 790,881 | ||||||||
| Total Current Liabilities | $ | 3,232,506 | $ | 6,555,215 | (51 | %) | ||||||
| LONG-TERM LIABILITIES | ||||||||||||
| Lease liability, net of current portion | $ | 68,936 | $ | 120,611 | (43 | %) | ||||||
| Debt, net of current portion and discounts | $ | 188,509 | $ | 287,149 | (34 | %) | ||||||
| related party notes, net of current position | $ | 75,000 | (100 | %) | ||||||||
| TOTAL LIABILITIES | $ | 3,489,951 | $ | 7,037,975 | (50.4 | %) | ||||||
John Keeler, Chairman and CEO of Blue Star, stated, "I feel it necessary to release this shareholder letter as we are aware of and navigating difficulties with Taste of BC Aquafarm's parcel landlord's libel and slander campaign against Blue Star Foods, Corp."
Blue Star Foods Corp and its Canadian subsidiary, Taste of BC Aquafarm, Inc. ("TOBC"), have confronted challenges stemming from interactions with TOBC's parcel landlord, from whom Blue Star acquired Taste of BC Aquafarm, Inc. in 2021. These incidents have been accompanied by tort interference as recent as July, 2024 and other past actions orchestrated by his son's malevolent and willful management negligence, while at helm of Taste of BC, which was terminated in February 2024. Solely for own personal and financial gain, that seem aimed at undermining both economic stability and corporate reputation.
Steve Atkinson, in his capacity as parcel landlord, has been formally accused of interfering with the functions of Taste of BC, causing human capital employed time loss to deter Mr. Atkinson's malevolent, negligent and malicious acts. Employees have reported numerous instances of harassment, undermining their ability to perform their duties in a secure and productive environment
In a particularly concerning turn, there is evidence (including CCTV recordings) of trespassing and property vandalization attributed to Steve Atkinson. However, The Taste of BC Aquafarms' team championed by safeguarding the equipment and fish at the farm.
The situation is further compounded by an orchestrated campaign of libel and slander against Blue Star Foods Corp. Various reports from industry publications have surfaced, seemingly stemming from Mr. Atkinson's disseminating half-truth, false rumors and lies.
Blue Star is on the right side of the truth and is focusing on factual communication, the company aims to protect its interests and of its shareholders, while continuing to advance its mission in sustainable seafood production & targeted revenue growth.
Considering libel and slander reputational campaign, Blue Star Foods appreciates the continued support from its employees, supply and distributor partners, and most importantly seeking support from its shareholders. Together, let's aim to overcome these adversities, seek legal claims and remedies against the reputational perpetrator(s), while retaining focus on growth, innovation and contribution to the aquaculture industry. It is essential to transform challenges into opportunities for growth, resilience, and strengthened relationships within the industry.
On February 15, 2024; Benjamin Atkinson's employment was terminated as president of Taste of BC Aquafarm.
About Blue Star Foods Corp. (NASDAQ: BSFC)
Blue Star Foods Corp. an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS) that processes, packages and sells high-value seafood products. The Company believes it utilizes best-in-class technology, in both resource sustainability management and traceability, and ecological packaging. The Company also owns and operates the oldest continuously operating Recirculating Aquaculture System (RAS) full grow-out salmon farm in North America. The company is based in Miami, Florida, and its corporate website is: https://bluestarfoods.com
Forward-Looking Statements:
The foregoing material may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Risks concerning the Company's business are described in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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