Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 397

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1
Chunk 397
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 Lind Note, the Company granted Lind a first priority security interest and lien on all of its
assets, including a pledge of its shares in Keeler & Co., pursuant to a security agreement and a stock pledge agreement with Lind,
dated January 24, 2022 (the “2022 Security Agreement). Each subsidiary of the Company also granted a second priority security interest
in all of its respective assets.

The
2022 Lind Note is mandatorily payable prior to maturity if the Company issues any preferred stock (with certain exceptions described
in the note) or, if the Company or its subsidiaries issues any indebtedness. The Company also agreed not to issue or sell any securities
with a conversion, exercise or other price based on a discount to the trading prices of the Company’s stock or to grant the right
to receive additional securities based on future transactions of the Company on terms more favorable than those granted to Lind, with
certain exceptions.

If
the Company fails to maintain the listing and trading of its common stock, the note will become due and payable and Lind may convert
all or a portion of the outstanding principal at the lower of the then current conversion price and 80% of the average of the 3-day VWAP
during the 20 days prior to delivery of the conversion notice.

If
the Company engages in capital raising transactions, Lind has the right to purchase up to 10% of the new securities.

The
2022 Lind Note is convertible into common stock at $5.00 per share ($5,000 per share after taking into account the Company’s Reverse
Stock Split), subject to certain adjustments, on April 22, 2022; provided that no such conversion may be made that would result in beneficial
ownership by Lind and its affiliates of more than 4.99% of the Company’s outstanding shares of common stock. If shares are issued
by the Company at less than the conversion price, the conversion price will be reduced to such price.

Upon
a change of control of the Company, as defined in the 2022 Lind Note, Lind has the right to require the Company to prepay 10% of the
outstanding principal amount of the 2022 Lind Note. The Company may prepay the outstanding principal amount of the note, provided Lind
may convert up to 25% of the principal amount of the 2022 Lind Note at a price per share equal to the lesser of the Repayment Share Price
or the conversion price. The 2022