Blue Star Foods Issues Shareholder Letter from CEO
Rhea-AI Summary
Blue Star Foods Corp. (NASDAQ: BSFC), an ESG sustainable seafood company, has issued a shareholder letter addressing recent challenges and financial improvements. The company reports a 50.4% reduction in total liabilities, strengthening its balance sheet by $4,630,557 in shareholder equity as of June 30, 2024, compared to the same period in 2023.
CEO John Keeler addresses difficulties with Taste of BC Aquafarm's parcel landlord, Steve Atkinson, citing allegations of tort interference, harassment, trespassing, and property vandalization. The company is facing a libel and slander campaign, which it attributes to false rumors spread by Mr. Atkinson.
Blue Star Foods emphasizes its commitment to transparency, factual communication, and protecting shareholder interests while continuing to focus on sustainable seafood production and targeted revenue growth.
Positive
- 50.4% reduction in total liabilities year-over-year
- $4,630,557 improvement in shareholder equity
- 33% decrease in accounts payable and accruals
- 64% reduction in current maturities of related party long-term notes
- 99.9% decrease in warrants liability
Negative
- Ongoing legal and reputational challenges with Taste of BC Aquafarm's parcel landlord
- Allegations of tort interference, harassment, and property vandalization affecting operations
- Libel and slander campaign potentially impacting company reputation
- 39% increase in loan payable
- 13% increase in derivative liability
Insights
The shareholder letter from Blue Star Foods Corp. (BSFC) reveals significant financial improvements and operational challenges. The company has achieved a
Key improvements include:
- Reduction in accounts payable and accruals by
33% - Elimination of current maturities of long-term debt (
$2,250,343 ) - Decrease in related party notes payable by
95% - Significant reduction in warrants liability by
99.9%
However, the company faces operational challenges, including disputes with a landlord and allegations of interference. These issues could potentially impact the company's reputation and operations. Investors should monitor how management addresses these challenges and their potential impact on future financial performance.
Despite these hurdles, the substantial improvement in the balance sheet suggests that BSFC is making progress in strengthening its financial position, which could support future growth initiatives in the sustainable seafood industry.
The shareholder letter reveals significant legal and operational challenges for Blue Star Foods Corp. Key legal issues include:
- Allegations of libel and slander against the company by a parcel landlord
- Reported tort interference as recent as July 2024
- Accusations of trespassing and property vandalization, supported by CCTV evidence
- Employee harassment claims
- Termination of a key executive (Benjamin Atkinson) in February 2024
These legal issues pose potential risks to the company's operations and reputation. The company appears to be taking a defensive stance, focusing on "factual communication" and seeking legal remedies against the alleged perpetrators. However, the ongoing nature of these disputes could lead to prolonged legal battles and associated costs.
Investors should be aware that such legal challenges can impact a company's financial performance and market perception. The company's ability to resolve these issues efficiently will be important for its future stability and growth. Monitoring the progress of any legal proceedings and their potential impact on operations will be essential for assessing the company's risk profile.
Balance Sheet Improvement by
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
| 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.
Investor Contacts:
investors@bluestarfoods.com
FAQ
What is the percentage reduction in Blue Star Foods Corp's (BSFC) total liabilities as of June 30, 2024?
How much did Blue Star Foods Corp (BSFC) improve its shareholder equity?
What challenges is Blue Star Foods Corp (BSFC) facing with Taste of BC Aquafarm's parcel landlord?
When was Benjamin Atkinson's employment as president of Taste of BC Aquafarm terminated?
