Blue Star Foods has been informed by the Nasdaq stock exchange that the company is no longer in compliance with the minimum stockholders' equity requirement for continued inclusion on the Nasdaq Capital Market exchange.
Miami-based Blue Star Foods owns land-based steelhead farmer Taste of BC and Gault Seafood, a company using a recirculating aquaculture system (RAS) to farm Atlantic blue crab.
The Nasdaq notice cited the company's reported stockholders' equity of $479,238 (€446,510) in its quarterly report filed in May.
This non-compliance serves as an additional basis for potential delisting of the company's securities from Nasdaq.
In addition, Nasdaq officials said that as of May 22 Blue Star Foods did not meet the alternative compliance standards concerning the market value of listed securities or net income from continuing operations.
In November, the company was notified that it is at risk of being de-listed from the Nasdaq stock market if it is unable to increase its share price.
In response, the company has scheduled a June 29 hearing with Nasdaq officials to present its plan for regaining compliance with the minimum bid price requirement, which is essential for continued listing on the Nasdaq Capital Market.
Some Good news
The company did report some more postive news on June 1, when it announced it has entered into a new $1 million (€935,000_ supply agreement with Bloomin’ Brands.
In April, Blue Star started to deliver approximately 115,000 pounds of pasteurized crab meatto Bloomin’ Brands for its Outback Steakhouse crab related menu.
In April, Blue Star Foods reported a net loss of $13.2 million (€12 million) last year -- nearly 25 percent higher than the year prior.
Revenue, meanwhile, grew 28 percent to $12.8 million (€11.7 million) from 2021.
Blue Star acquired Taste of BC Aquafarms, a land-based steelhead salmon farming operation based in Nanaimo, British Columbia, in 2021. The company plans to produce 21,000 metric tons of product by 2028.
In addition, the company operates a softshell crab RAS farm. That business, which began producing crab last year, generated close to $1 million (€910,000) in revenue.
CEO John Keeler said the company's RAS expansion plans are taking longer to achieve than expected, forcing it to seek new capital, which it expects will materialize later this year.
In February, Blue Star Foods closed on a $1.8 million (€1.7 million) capital raise through a public offering of 9 million shares at $0.20 (€0.19) per share.