Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 398

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1
Chunk 398
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 Lind Note contains certain negative covenants, including restricting the Company from certain distributions,
stock repurchases, borrowing, sale of assets, loans and exchange offers.

Upon
an event of default as described in the 2022 Lind Note, the 2022 Lind Note will become immediately due and payable at a default interest
rate of 125% of the then outstanding principal amount. Upon a default, all or a portion of the outstanding principal amount may be converted
into shares of common stock by Lind at the lower of the conversion price and 80% of the average of the three lowest daily VWAPs.

During
the year ended December 31, 2023, the Company made aggregate principal payments on the 2022 Lind Note of $2,075,900 through the issuance
of an aggregate of 27,584 shares of common stock. On September 15, 2023, the Company paid $2,573,142 to Lind and the 2022 Lind Note
was extinguished.

2023
Note

On
May 30, 2023, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with Lind pursuant to which
the Company issued to Lind a secured, two-year, interest free convertible promissory note in the principal amount of $1,200,000 (the
“2023 Lind Note”) and a warrant (the “Lind Warrant”) to purchase 8,701 shares of common stock of the Company
commencing six months after issuance and exercisable for five years at an exercise price of $122.50 per share. The Lind Warrant includes
cashless exercise and full ratchet anti-dilution provisions. In connection with the issuance of the Lind Note and the Lind Warrant, the
Company paid Lind a $50,000 commitment fee. The proceeds from the sale of the Note and Warrant are for general working capital purposes.

    F-21

In
connection with the issuance of the 2022 Lind Note, the Company and Lind amended the 2022 Security Agreement to include the new 2023
Lind Note, pursuant to an amended and restated security agreement, dated May 30, 2023, between the Company and Lind.

The
Company agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common
stock issuable pursuant to the 2023 Lind Note and Lind Warrant. If the registration statement is not declared effective within 90 days