Blue Star Foods Corp. Reports Financial Results for Q3-2021
November 22 2021 - 6:00PM
Blue Star Foods Corp., (NASDAQ:BSFC) (“Blue Star” or “BSFC”), an
integrated Environmental, Social, and Governance (ESG) seafood
company, announced today general operating highlights and its
financial results for the fiscal quarter ended September 30, 2021
(“Q3-2021”).
Q3-2021 and Subsequent Highlights
- Continued increase in sales – Blue
Star continues to build sales momentum, increasing Q3-2021 sales to
$3.726 million from Q2-2021 of $2.129 million, a quarterly increase
of 75%.
- Completed uplisting to the NASDAQ -
The Company’s common shares began trading on the Nasdaq Capital
Market on November 3, 2021.
- Raised $4.0 million in a registered
securities offering – Concurrent with the Company’s NASDAQ
uplisting, the Company strengthened its balance sheet by raising
additional capital to deliver on customer orders and support new
business development.
- Advancement of the RAS division of
Blue Star – BSFC continues to advance the development of an
additional full-scale commercial Recirculating Aquaculture Systems
(RAS) facility in British Columbia.
- Blue Star’s RAS Division, Taste of
BC Aquaculture, has selected Deep Bay, British Columbia as the
location for its new land-based, 1,500 metric ton steelhead salmon
farming facility. This location has already been permitted and
zoned for RAS operations and likely has the capacity to fit three
1,500 metric ton facilities.
- Taste of BC has agreed upon
material terms of a 20-year land-lease agreement for Deep Bay
property, which includes the opportunity to expand from its
original approximately 20-acre footprint with an option for another
approximately 10 acres.
- Taste of BC has completed the
preliminary design of the new facility with its engineering partner
PR Aqua, ULC.
Management Commentary
“We are encouraged by the recent pick-up in
customer orders indicating that we are moving towards a post-Covid
business environment,” said John Keeler, Chairman and CEO of Blue
Star. He continued, “Our 75% increase in quarterly sales from Q2 to
Q3 show momentum towards a normalization of our previous sales
numbers. We are working day and night to fulfill all the demand
that we have received from our customers, and we appreciate the
trust that our partners have placed in us to get them product in a
timely fashion.”
“We are excited to have completed our uplist to
the NASDAQ as a major step in our development to building a
world-class, global operation that focuses on bringing
sustainability and safety to the global food-chain. To that end, we
are energized by the progress we are making in advancing our plans
to implement a truly transformative land-based salmon farming
operation at Deep Bay in British Columbia,” said Mr. Keeler. He
further added, “With the site selected, we are now finalizing a
land-lease agreement for the property that will provide us with
more than enough land to construct our initial farming module and
have ample space for future growth. Simultaneously, we are pulling
building permits and staging development resources so we can hit
the ground running with construction.”
“Aquaculture remains one of the fastest growing
animal food-producing sectors, with the salmon market in particular
valued at nearly $17 billion globally,” continued Mr. Keeler. “We
believe that Recirculatory Aquaculture Systems are a disruptive
force in fish farming that can meet the increasing demand for
marine-based protein with virtually no detrimental impact to the
environment. Over the last decade we have refined our modularly
designed systems to create a successful, proven business model that
delivers predictable, profitable results. We are working diligently
to develop a new facility that will allow us to leverage this
success and scale our business to capture a meaningful share of the
massive market opportunity.”
Q3-2021 Financial
Highlights
- Increased Sales. Revenue for the
three months ended September 30, 2021, was $3.726 Million as
compared to $2.129 Million for the three months ended June 30,
2021.
- Small Increase In Operating
Expenses. Operating Expenses for the three months ended September
30, 2021, increased to $1.162 Million as compared to $843,319 for
the three months ended June 30, 2021.
Increased Profitability. The Adjusted Cash Net
Income(1) for the three months ended September 30, 2021, was
$367,382 compared to $31,573 for the three months ended June 30,
2021. Net Income for the three months ended September 30, 2021, was
a loss of $161,788 compared with a loss of $437,127 for the three
months ended June 30, 2021.
About Blue Star Foods Corp.
Blue Star Foods Corp. is an integrated ESG
seafood company 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: www.bluestarfoods.com.
(1) The Adjusted
Cash Net Income is a Non-GAAP Financial Measure and is the
Company’s Net Income adjusted for the minor issuance of stock
dividends and certain professional fees. We report Adjusted Cash
Net Income to measure our overall results because we believe it
better reflects our net results by excluding the impact of non-cash
equity-based compensation and other one-time expenses, and believe
it enhances our investors’ overall understanding of the financial
performance of our business. The Cash Adjusted Net Income of
$367,382 for Q3-2021 includes an addback of Interest Expense (and
accrued) of $116,950, Depreciation/Amortization of $143,199 and
Stock Based Professional Fees of $269,021.
Safe Harbor
This press release contains statements, which
may constitute “forward-looking statements”. Those statements
include statements regarding the intent, belief, or current
expectations of the Company and members of its management team, as
well as the assumptions on which such statements are based. Such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that
may cause actual results to differ from those anticipated are
discussed throughout the Company’s reports filed with Securities
and Exchange Commission which are available at www.sec.gov as
well as the Company’s web site at http://www.bluestarfoods.com. The
Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results.
ContactsBrett Maas of Hayden IR Email:
brett@haydenir.com Office: (646) 536-7331
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