Company: BSFC
Filing Date: 2025-02-10
Form Type: POS AM
Source: 0001493152-25-005479
Chunk: 188

Company: Blue Star Foods Corp.
Filing Date: 2025-02-10
Form: POS AM
Chunk 188
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 loan was $ 112,000as of September 30, 2024.

ClearThink Term Loan

On January 18, 2024, the Company entered into the Revenue-Based Factoring MCA Plus Agreement with ClearThink Capital LLC (“ClearThink”) which provides, among other things, for a 33-week term loan in the principal amount of $ 200,000(with an additional one-time commitment fee of $ 50,000). Interest accrues at the rate of 25% per annum with an additional 5% default interest rate or $ 50,000will be added to the principal amount and accrue after principal is paid. The Company is required to make biweekly payments of $ 14,706, commencing February 1, 2024 for the term of the agreement. On January 25, 2024, the Company issued 7,092shares of common stock to ClearThink as a commitment fee, with a fair value of $ 50,000. For the nine months ended September 30, 2024, the Company made principal payments on the loan totaling $ 200,000and interest payments of $ 50,000. The outstanding balance on the loan was $ 0as of September 30, 2024.

1800 Diagonal Notes

On April 16, 2024, the Company issued to 1800 Diagonal Lending LLC, a Virginia limited liability company (“Diagonal”), a convertible promissory note in the principal amount of $ 138,000with an original issue discount of $ 23,000(the “First Diagonal Note”). The First Diagonal Note has a one-time interest payment of $ 26,220paid upon issuance and a maturity date of January 15, 2025. The proceeds from the sale of the First Diagonal Note are for general working capital. Upon the occurrence of an event of default as described in the First Diagonal Note, the note will become immediately due and payable at a default interest rate of 22% of the then outstanding principal amount of the note. Additionally, Diagonal will have the right to convert all or any part of the outstanding and unpaid amount of the note into shares of the Company’s common stock at a conversion price of 61% of the market price as described in the First Diagonal Note. The Company may not, without Diagonal’s written consent, sell, lease, or otherwise dispose of any significant portion of its assets except in the ordinary course of business.