Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 335

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1
Chunk 335
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 business prospects. This volatility could depress the market price of the Common Stock for reasons unrelated to operating
performance. Moreover, the OTC Pink Market is not a stock exchange, and trading of securities on the OTC Pink Market is often more sporadic
than the trading of securities listed on Nasdaq. These factors may result in shareholders having difficulty reselling any Common Stock.

Our
Common Stock began trading on the OTCQB in February 2025. The OTCQB market is not a national securities exchange and does not provide
the benefits to stockholders which a national exchange provides. Furthermore, according to the OTC Markets website, the OTCQB “is
for early-stage and developing U.S. and international companies. To be eligible, companies must be current in their reporting and undergo
an annual verification and management certification process. Companies must meet $0.01 bid test and may not be in bankruptcy.”
There is a still limited trading market for our Common Stock. Accordingly, there can be no assurance as to the liquidity of any market
that may develop for our Common Stock.

Management
may have broad discretion as to the use of the proceeds from offerings of its securities and may not use the proceeds effectively.

Because
the Company may not designate the amount of net proceeds from offerings to be used for any particular purpose, management may have broad
discretion as to the application of the net proceeds and could use them for purposes other than those contemplated at the time of such
offering. Management may use net proceeds for corporate purposes that may not improve the Company’s financial condition or market
value.

Our
Common Stock may be deemed a “penny stock” which may reduce the value of an investment in the stock.

Rule
15g-9 under the Exchange Act establishes the definition of a “penny stock,” for the purposes relevant to us, as any equity
security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain
exceptions. For any transaction involving a penny stock, unless exempt, the rules require: (a) that a broker or dealer approve a person’s
account for transactions in penny stocks; and (b) the broker or dealer receive from the investor a written agreement to the transaction,
setting forth the identity and quantity of the penny stock to be purchased.

In
order to approve a person’s account for transactions in penny stocks, the broker or dealer must: (a) obtain financial information