Blue Star Foods submits application to list on NASDAQ, saw severe revenue drop in 2020

Miami, Florida, U.S.A.-based Blue Star Foods Corp. has announced that it has submitted a formal application to be listed on the Nasdaq Stock Market (NASDAQ).

The application is subject to approval based on a number of factors, according to the company, which include meeting the minimum listing requirements – something the company said “it intends to satisfy.” During the application review the company’s common stock will remain listed on the over-the-counter market, under the symbol BSFC.

“We believe listing our common stock on the NASDAQ will improve liquidity, increase our corporate visibility in the financial markets, and create shareholder value,” Blue Star Chairman and CEO John Keeler said. “We believe that listing on the NASDAQ is a natural progression for the company and our shareholders.”

Blue Star announced in 2019 that the company was seeking acquisitions and investors in its company when it was made public. The company acquired Coastal Pride Company in late 2019, and earlier this year it confirmed it inked a term sheet to acquire Naniamo, British Columbia, Canada-based Taste of BC Aquafarms Inc., a recirculating aquaculture system operation specializing in salmon production. The company has since confirmed that it signed a definitive agreement to acquire the B.C.-based salmon farm, subject to certain closing conditions.

According to an 8-K filing by the company to the Unite States Securities and Exchange Commission (U.S. SEC), Blue Star will acquire all of the shares from the sellers – Taste of BC owners Steve and Janet Atkinson – for a purchase price of CAD 4 million (USD 3.2 million, EUR 2.7 million).  

“Following the acquisition, Taste of BC Aquafarms will become a wholly owned subsidiary of Blue Star Foods Corp. but continue to be run by the existing owner/operators, the Atkinson family,” the company said.

As the company aims to be listed on NASDAQ, its filings to the U.S. SEC indicate that it saw heavy impacts from COVID-19. The company’s 10-K filing to the U.S. SEC indicates the company’s revenue for the 12 months ending in December 2020 decreased 40.8 percent to USD 14.1 million (EUR 11.7 million), compared to USD 23.8 million (EUR 19.7 million) in revenue over the same period last year. The company cited the impacts of COVID-19 for the sharp decrease in revenue.

“The current COVID-19 pandemic has adversely affected our business operations, including disruptions and restrictions on our ability to travel or to distribute our seafood products, as well as temporary closures of our facilities,” the company said in the filing. “Any such disruption or delay may impact our sales and operating results. In addition, COVID-19 has resulted in a widespread health crisis that adversely affected the economies and financial markets of many other countries. As a result of COVID-19, the company has experienced a significant decrease in revenue in the year ended 31December, 2020 as compared to the year ended 31 December, 2019.”