Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 399

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1
Chunk 399
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the 2023 Lind Note will be in default. Lind was also granted piggyback registration rights.

If
the Company engages in capital raising transactions, Lind has the right to purchase up to 20% of the new securities for 24 months.

The
2023 Lind Note is convertible into common stock of the Company after the earlier of 90 days from issuance or the date the registration
statement is effective, 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. The conversion price of the 2023 Lind Note is equal to
the lesser of: (i) $120.00; or (ii) 90% of the lowest single volume-weighted average price during the twenty-trading day period ending
on the last trading day immediately preceding the applicable conversion date, subject to customary adjustments. The maximum number of
shares of common stock to be issued in connection with the conversion of the 2023 Lind Note and the exercise of the Lind Warrant, in
the aggregate, will not, exceed 19.9% of the outstanding shares of common stock of the Company immediately prior to the date of the 2023
Lind Note, in accordance with NASDAQ rules and guidance. Due to the variable conversion price of the 2023 Lind Note, the embedded conversion
feature was accounted as a derivative liability. The fair value of the derivative liability at issuance amounting to $264,687 was recorded
as debt discount and amortized over the term of the note.

The
2023 Lind Note contains certain negative covenants, including restricting the Company from certain distributions, stock repurchases,
borrowing, sale of assets, loans and exchange offers.

Upon
the occurrence of an event of default as described in the 2023 Lind Note, the 2023 Lind Note will become immediately due and payable
at a default interest rate of 120% of the then outstanding principal amount of the Lind Note.

The
Warrant entitles the Investor to purchase up to 8,701 shares of common stock of the Company during the exercise period commencing on
the date that is six months after the issue date (“Exercise Period Commencement”) and ending on the date that is sixty months
from the Exercise Period Commencement at an exercise price of $122.50 per share, subject to customary adjustments. The Warrant includes
cashless exercise and full r