Blue Star Foods Reports $1.9 Million Revenue for First Quarter Ended March 31, 2023

Miami, FL, May 23, 2023 (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”), announced unaudited financial and operational results for the three months ended March 31, 2023.

Key Financial Highlights for the Three Months Ended March 31, 2023

• Revenue of $1.9 million
• RAS revenues increased to $0.6 million
• Gross profit of $0.3 million
• Operating loss of $0.9 million
• Net loss of $2.0 million (included $1.1 million of non-cash loss on settlement of stock, amortization of debt note and one-time non-recurring expenses)
• Adjusted EBITDA loss of $0.9 million
• Inventory and RAS biomass of $3.5 million at March 31, 2023 ($4.8 million at December 31, 2022)
  

Business Highlights for the Three Months Ended March 31, 2023

• Raised $1.8 million with Aegis Capital Corp. in an underwritten public offering
• Entered into a supply agreement for up to $4 million annually with JustFoodForDogs, LLC
• Engaged ShareIntel-Shareholder Intelligence Services, LLC to combat alleged illegal short selling
  

Business Highlights Subsequent to the Three Months Ended March 31, 2023

• 2022 ESG report included in two most prominent sustainability reporting standards
• Ramped shipments to Just Food For Dogs under its supply agreement for up to $4 million annually

Management Commentary

John Keeler, Chairman and CEO of Blue Star, commented, “We got off to a slow beginning for 2023, but started to see some increase in demand and orders towards the end of the first quarter. Our RAS business continues to perform well and, although our 10X RAS expansion plans are taking longer than previously expected, remain poised for expansion. We hope to have specific details on our RAS expansion to share over the next few months.”

Mr. Keeler concluded, “Subsequent to the end of the first quarter, we raised $150,000 in equity priced at $0.20 with an institutional fund, who has also agreed to purchase up to an additional $10,000,000 of the Company’s common stock, with the timing, exact dollar amounts and pricing up to the Company. In addition, we entered into a non-binding term sheet with Lind Global Fund II, L.P. that contemplates the Company entering into a new securities purchase agreement with Lind, pursuant to which the Company will issue to Lind a secured, two-year, convertible promissory note in the principal amount of approximately $1,200,000 and a common stock purchase warrant to acquire shares of common stock of the Company. As to Nasdaq’s letter scheduling the delisting and suspension of trading of the Company’s common stock: We have requested the hearing before the Nasdaq Hearings Panel. The Company’s request for a hearing will stay any suspension or delisting action by Nasdaq pending the Panel’s final decision. At the hearing, the Company will provide its plan to regain compliance with Nasdaq’s Minimum Bid Price Requirement, which includes but is not limited to an already shareholder approved reverse stock split if necessary. We look forward to the remainder of 2023 and look forward to providing updates on our progress.”