Blue Star Foods Corp., a seafood company, has been notified by Nasdaq that it no longer meets the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The company's common stock has closed below the $1.00 per share threshold for the last 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
The company, which specializes in preparing fresh and frozen fish and seafood, received the notice on Monday, October 16, 2024. As Blue Star Foods is currently under a Mandatory Panel Monitor until June 11, 2025, it is ineligible for an automatic compliance period to rectify the bid price deficiency.
In response to the delisting notice, Blue Star Foods requested a hearing with the Nasdaq Hearings Panel on Friday, October 18, 2024. The hearing request will temporarily halt the suspension of the company's securities and the filing of the Form 25-NSE until the Panel reaches a decision. The company is required to pay a $20,000 fee for the hearing.
This development follows a previous report on June 12, 2024, where Blue Star Foods disclosed its subjection to the Mandatory Panel Monitor for a year. The company, headquartered in Miami, Florida, is incorporated in Delaware and trades under the ticker symbol NASDAQ:BSFC.
This news article is based on a press release statement from the company's recent SEC filing.
In other recent news, Blue Star Foods has reported notable financial improvements for the first half of 2024, including a 7% revenue increase to $1.8 million and a 264% rise in gross profit for the second quarter. The first half of the year also witnessed a 14% revenue increase to $2.3 million and a 27% increase in gross profit. The company's operating loss decreased by 24% to $1.5 million, indicating a positive shift in its financial trajectory.
In further developments, Blue Star Foods has renewed its aquaculture license through 2033 and signed an agreement to supply nutritious meals to the U.S. Military. The company also plans to enhance its soft-shell crab operations by integrating AI with UV light technology.
In the first quarter of 2024, the company reported a 19% increase in revenue and a significant 44% reduction in net losses. The company's operating loss improved by 11%, partially due to non-cash or one-time non-recurring operating expenses.
Blue Star Foods has also entered a Master Service Agreement with a fully integrated seafood provider and signed a contract with Eagle Rising. These agreements are expected to be implemented in military bases in the coming months. These are among the recent developments within the company.
InvestingPro Insights
Blue Star Foods Corp.'s current financial situation aligns with the challenges highlighted in the article. According to InvestingPro data, the company's market capitalization stands at a mere $1.26 million, reflecting its precarious position. The stock's price has plummeted significantly, with a one-year price total return of -93.39% as of the latest data, underscoring the severity of its listing predicament.
InvestingPro Tips indicate that Blue Star Foods "operates with a significant debt burden" and "may have trouble making interest payments on debt." These factors likely contribute to the company's struggle to maintain its Nasdaq listing. Additionally, the tip that the company is "quickly burning through cash" suggests ongoing financial strain, which could complicate efforts to address the minimum bid price requirement.
On a slightly more positive note, InvestingPro Tips also mention that "analysts anticipate sales growth in the current year" and "net income is expected to grow this year." These projections, if realized, could potentially aid Blue Star Foods in its appeal to the Nasdaq Hearings Panel.
For investors seeking a deeper understanding of Blue Star Foods' situation, InvestingPro offers 19 additional tips, providing a comprehensive view of the company's financial health and market performance.
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