Blue Star Foods Announces 1-for-50 Reverse Stock Split
Rhea-AI Summary
Blue Star Foods Corp (NASDAQ: BSFC) announced a 1-for-50 reverse stock split of its Class A common stock, effective May 20, 2024. Each 50 shares of the common stock will be converted into one new share. The total number of authorized shares remains at 100,000,000. Adjustments will be made to equity awards, warrants, and convertible notes. Fractional shares will be rounded up. The reverse split aims to meet the $1.00 minimum bid price requirement for Nasdaq listing. The new CUSIP number for post-split shares will be 09606H309. Trading on a split-adjusted basis will begin on May 20, 2024.
Positive
- 1-for-50 reverse stock split aims to meet Nasdaq's $1.00 minimum bid price requirement.
- Total number of authorized shares remains unchanged at 100,000,000.
- Adjustments will be made to equity awards, warrants, and convertible notes to maintain proportionality.
- Fractional shares will be rounded up, ensuring no shareholder loses fractional ownership.
Negative
- The company faces risk of not meeting the $1.00 minimum bid price requirement despite the reverse stock split.
- Reverse stock splits can be perceived negatively by investors as a sign of financial instability.
News Market Reaction
On the day this news was published, BSFC gained 15.80%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Miami, FL, May 15, 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 it will effect a 1-for-50 reverse stock split ("Reverse Stock Split") of its authorized and issued and outstanding shares of Class A common stock, par value
Blue Star's Common Stock will continue to trade on The Nasdaq Capital Market ("Nasdaq") under the existing symbol "BSFC" and will begin trading on a split-adjusted basis when the market opens on May 20, 2024. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 09606H309.
The Reverse Stock Split is primarily intended to bring the Company into compliance with the
The Company's board of directors approved a reverse stock split of 1- for-50 shares at their May 7, 2024 board meeting. The Company's shareholders approved a reverse stock split of up to 1- for-50 shares on April 30, 2024.
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.
Investor Contacts:
investors@bluestarfoods.com
FAQ
What is the effective date for Blue Star Foods' 1-for-50 reverse stock split?
What will be Blue Star Foods' new CUSIP number after the reverse stock split?
Why did Blue Star Foods implement a 1-for-50 reverse stock split?
How will the reverse stock split affect Blue Star Foods' authorized shares?
What happens to fractional shares in Blue Star Foods' reverse stock split?
Will Blue Star Foods' ticker symbol change after the reverse stock split?
When will Blue Star Foods start trading on a split-adjusted basis?
