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


(END) Dow Jones Newswires

January 25, 2022 08:19 ET (13:19 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.