Owner of Canada land-based trout farm nabs $1.8 million in fresh financing

Miami-based Blue Star Foods, which owns land-based salmon farmer Taste of BC, announced Wednesday the closing of a $1.8 million (€1.7 million) capital raise through a public offering of 9 million shares at $0.20 (€0.19) per share.

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The company said it intends to use the fresh capital for general corporate purposes, but added it may also use a portion of the funding to acquire or make investments in businesses, products, and offerings, although there are no agreements or commitments for any acquisitions or investments at this time.

In November, the company's subsidiary Taste of BC Aquafarms, which Blue Star acquired in June of 2021, applied for an aquaculture license for a land-based steelhead trout farm in western Canada.

The proposed recirculating aquaculture system (RAS) facility in Campbell River, BC could produce 1,500 metric tons of steelhead annually. Construction of the approximately $35 million (€33.3 million) farm is anticipated to begin in the second quarter of 2023.

Blue Star Foods remains at risk of being de-listed from the Nasdaq stock market if it is unable to increase its share price.

The group received a letter from Nasdaq on Nov. 17 notifying it that because the closing bid price for its common stock has been below $1 (€1) per share for the past 30 consecutive business days, it no longer complies with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.

While the notice has no immediate effect on the company’s listing or on the trading of the stock, the company now has until May 16 to regain compliance with the minimum bid price requirement.

The company's stock price dipped below $1 last September and has been heading steadily downward since. On Feb. 15 the stock price was hovering around 18 cents per share.