Blue Star Foods in Investment Agreement With Lind Partners
January 25 2022 - 8:34AM
Dow Jones News
By Chris Wack
Blue Star Foods Corp. said it has entered into a securities
purchase agreement with Lind Global Fund II LP, an investment
entity managed by The Lind Partners LLC.
Under the agreement, Blue Star will sell a convertible note in
the principal amount of $5.75 million, which includes a 15%
original issue discount, and a five-year warrant to purchase 1
million shares exercisable at $4.50.
Blue Star said key terms of the secured 24-month note include a
0% interest rate and a fixed conversion price of $5 a share, which
is a 26% premium to the $3.97 closing price of Blue Star on Monday.
Principal payments are due in 18 monthly installments beginning 180
days after issuance.
Under the terms of the note, Blue Star has the right to make
principal and interest payments in the form of either cash or
common stock.
Phillip Valliere, managing director at The Lind Partners, cited
high demand for sustainably farmed and harvested seafood as a
reason for the investment.
Blue Star Chairman and Chief Executive John Keeler said the
company would use the funds to produce more product geared toward
fulfilling distributor partner orders in North America.
Blue Star shares were up 5% to $4.17 in premarket trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 25, 2022 08:19 ET (13:19 GMT)
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