Blue Star Foods Announces Stock Buyback Program for Up to $1.5 Million

Rhea-AI Summary

Blue Star Foods Corp. (NASDAQ: BSFC) has announced a stock buyback program to repurchase up to $1.5 million of its common stock. The company will conduct repurchases in the open market, with timing and amount depending on factors including price, trading volume, and market conditions. The program can be suspended, modified, or discontinued at any time. Management believes the stock is significantly undervalued and views the buyback as an opportunity to return value to shareholders.

Positive

• Authorization of $1.5 million stock buyback program
• Management's confidence in company value indicated by buyback initiative
• Potential positive impact on share price and EPS through share count reduction

Negative

• Use of cash reserves for buyback could reduce funds available for operations or growth
• No guarantee of full program execution as buyback is discretionary

Insights

Financial Analyst

A $1.5 million stock buyback program for a micro-cap company with a market cap of just $1.9 million is unusually large, representing about 79% of the company's current market value. While buybacks typically signal management's confidence and can support share price, several concerns arise here:

• The company's ability to fund such a large buyback relative to its size needs scrutiny
• The extremely low market cap suggests significant financial challenges
• The stock's illiquid nature means buybacks could significantly impact trading dynamics
• The program's flexibility with no specific timeline or commitment raises questions about actual implementation

Investors should carefully examine the company's cash position and operational performance before interpreting this announcement as a positive signal.

Miami, FL, Nov. 26, 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 a stock buyback program to repurchase up to $1.5 million of the Company's common stock.

Under the program, the Company is authorized to repurchase its shares from time to time in the open market. The timing and amount of any repurchases will depend on a variety of factors, including price, trading volume, general market conditions, and other corporate considerations. The repurchase program does not obligate the Company to repurchase any specific number of shares and may be suspended, modified, or discontinued at any time without prior notice.

John Keeler, Chairman and CEO of Blue Star Foods, commented, “We are pleased to announce this stock buyback program, which reflects our confidence in the strong and growing business of Blue Star. We believe our stock is significantly undervalued. This buyback program represents an attractive opportunity to return value to our shareholders."

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

How much is Blue Star Foods' (BSFC) stock buyback program worth?

Blue Star Foods has authorized a stock buyback program worth up to $1.5 million of its common stock.

When did Blue Star Foods (BSFC) announce its stock buyback program?

Blue Star Foods announced its stock buyback program on November 26, 2024.

What are the terms of Blue Star Foods' (BSFC) buyback program?

The program allows for open market repurchases with flexible timing and amounts, and can be suspended, modified, or discontinued at any time without prior notice.

Why is Blue Star Foods (BSFC) implementing a stock buyback?

The company believes its stock is significantly undervalued and views the buyback as an opportunity to return value to shareholders.