Blue Star Foods Submits Request for Withdrawal of Registration Statement on Form S-1
Rhea-AI Summary
Blue Star Foods Corp. (NASDAQ: BSFC), an ESG sustainable seafood company, has requested the SEC to withdraw its Registration Statement on Form S-1 filed on August 6, 2024. The company has decided not to pursue its public offering at this time, citing that the current market capitalization doesn't accurately reflect the company's true value. No securities have been sold in connection with the offering, and the Registration Statement was not declared effective by the SEC. CEO John Keeler emphasized that this decision was made after careful consideration of financial standing and market conditions, aiming to protect shareholder interests and support long-term growth. Blue Star Foods remains confident in its business model and sales growth trend, assuring that this move will not impact core operations or strategic objectives.
Positive
- Company remains confident in its business model and sales growth trend
- Decision aims to protect shareholder interests and support long-term growth
Negative
- Withdrawal of Registration Statement on Form S-1, canceling planned public offering
- Current market capitalization doesn't accurately reflect the company's true value according to management
Insights
Blue Star Foods' withdrawal of their S-1 registration statement signals a significant shift in their capital-raising strategy. This move typically indicates that market conditions or internal factors are not favorable for a public offering at this time. The CEO's statement about the company's market capitalization not reflecting its true value suggests potential undervaluation concerns. This decision could be positive in the long run if it prevents dilution at unfavorable prices, but it also raises questions about the company's immediate capital needs and growth plans.
The impact on investors is mixed. While it protects against potential dilution, it may also limit near-term growth opportunities that fresh capital could have provided. The company's confidence in its business model and sales growth trend is encouraging, but without specific financial figures, it's challenging to assess the validity of these claims. Investors should closely monitor Blue Star's alternative funding strategies and operational performance in the coming quarters to gauge the company's true financial health and growth prospects.
The withdrawal of Blue Star Foods' S-1 filing reflects broader market trends affecting small-cap companies, particularly in the sustainable seafood sector. With a focus on Recirculatory Aquaculture Systems (RAS), Blue Star operates in a niche but growing market. However, the decision to withdraw suggests that investor appetite for such specialized offerings may be currently , possibly due to macroeconomic factors or sector-specific challenges.
This move could indicate a shift in investor sentiment towards ESG-focused companies, particularly those in early growth stages. It's important to note that while the sustainable seafood market has long-term potential, short-term profitability and scalability concerns may be influencing investor decisions. The company's strategy reassessment could lead to a pivot in their approach to sustainability or their market positioning, which investors should watch closely. This withdrawal might also signal a broader trend of companies reassessing traditional public funding routes in favor of alternative financing methods.
Miami, FL, Aug. 16, 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), requested that the Securities and Exchange Commission ("SEC") consent to the withdrawal of our Registration Statement on Form S-1 (No. 333-281270) originally filed on August 6, 2024, as we no longer intend to pursue our public offering at this time. We believe this is in the best interests of our shareholders and investors.
The Registration Statement has not been declared effective by the SEC, and no securities have been sold in connection with the offering described in the Registration Statement.
We believe that this request serves to protect the investments of our shareholders. Shareholder’s trust and support are invaluable to us, and we are committed to making decisions that uphold our shareholder interests and support the long-term growth of our business.
John Keeler, Chairman and CEO of Blue Star Foods, commented, “We do not believe our current market capitalization accurately reflects the true value of our Company. This decision was made after thorough analysis and careful consideration of our financial standing and market conditions. We are dedicated to reassessing our strategy to ensure that it aligns with our shareholder interests and the growth of our business. Shareholders’ continued support and belief in Blue Star Foods Corp. mean the world to us. We look forward to creating long-term value together.”
We believe that this decision will not impact our core business operations or our strategic objectives. We remain confident in our business model and sales growth trend.
We guarantee that our request that an order granting the withdrawal of the Registration Statement will be issued by the Commission.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Company’s common stock or any securities, and there shall not be any offer, solicitation or sale of securities mentioned in the press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of such any state or jurisdiction.
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
Why did Blue Star Foods Corp. (BSFC) withdraw its Registration Statement on Form S-1?
When was the original Registration Statement on Form S-1 filed by Blue Star Foods Corp. (BSFC)?
Will the withdrawal of the Registration Statement affect Blue Star Foods Corp.'s (BSFC) core business operations?
Were any securities sold in connection with Blue Star Foods Corp.'s (BSFC) withdrawn offering?
