Blue Star Foods Corp. Reports Financial Results for Q3-2021

Miami, Florida, Nov. 22, 2021 (GLOBE NEWSWIRE) — 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.

Contacts
Brett Maas of Hayden IR
Email: [email protected]
Office: (646) 536-7331

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