Blue Star Foods Corp (NASDAQ:BSFC), an aquaculture company, has announced the completion of a reverse stock split of its common stock at a ratio of 1-for-50, effective as of May 20, 2024.
The decision, which was made to consolidate issued and outstanding shares of common stock, was approved by the company's board of directors on May 7, 2024, and by shareholders holding approximately 62.9% of the voting power on April 30, 2024.
The reverse stock split automatically converted every fifty outstanding shares of common stock into one share without further action from the company or its shareholders. In the process, no fractional shares were issued. Instead, shareholders owning fractional shares received a cash payment based on the fair market value of these shares at the time of the reverse stock split.
Before the amendment, Blue Star Foods had 100,000,000 authorized shares of common stock, with 57,149,378 shares issued and outstanding. Following the reverse stock split, the number of outstanding shares was reduced to approximately 1,142,949 shares. The company's authorized number of shares and the par value remained unchanged, as did the authorized or issued and outstanding number of shares of preferred stock.
The information for this article is based on a recent SEC filing.
InvestingPro Insights
Following the announcement of Blue Star Foods Corp's (NASDAQ:BSFC) reverse stock split, a closer look at the company's financial health and market performance offers additional insights. According to InvestingPro, Blue Star Foods is currently grappling with significant challenges. The company's market capitalization stands at a modest 2.71 million USD, reflecting the small scale of its operations in the aquaculture industry. With a negative P/E ratio of -0.23 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.78, investors are signaling concerns about the company's profitability.
Notably, Blue Star Foods has been experiencing a sharp revenue decline, with a -30.56% change in the last twelve months as of Q1 2024. This is juxtaposed with a more encouraging quarterly revenue growth of 19.06% in Q1 2024, suggesting some potential for recovery or seasonal variation in sales. Additionally, the company's gross profit margin is notably weak at just 0.69%, indicating that Blue Star Foods is struggling to translate sales into substantial profits.
An InvestingPro Tip worth mentioning is that analysts are expecting net income growth for Blue Star Foods this year, which could signal a turning point for the company if realized. Furthermore, the company's liquid assets exceed short-term obligations, providing some financial flexibility in the near term. However, the company's stock has been characterized by high price volatility and has suffered a significant decline over the past year, with a one-year price total return of -96.71%.
For those interested in a deeper dive into Blue Star Foods' financials and future prospects, InvestingPro offers additional tips and metrics. There are 15 more InvestingPro Tips available for Blue Star Foods, providing a comprehensive analysis of the company's financial position and market performance. For access to these valuable insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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