Company: BSFC
Filing Date: 2025-03-05
Form Type: S-1
Source: 0001493152-25-009166
Chunk: 185

Company: Blue Star Foods Corp.
Filing Date: 2025-03-05
Form: S-1
Chunk 185
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 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 $ 122.50per share, subject to customary adjustments. The Warrant includes cashless exercise and full ratchet anti-dilution provisions.

On July 27, 2023, the Company, entered into a First Amendment to the Purchase Agreement (the “Purchase Agreement Amendment”) with Lind, which provided for the issuance of further senior convertible promissory notes up to an aggregate principal amount of up to $ 1,800,000and the issuance of additional warrants in such amounts as the Company and Lind shall mutually agree.

Pursuant to the Purchase Agreement Amendment, the Company issued to Lind a two-year, interest free convertible promissory note in the principal amount of $ 300,000and a warrant to purchase 3,505shares of common stock of the Company at an exercise price of $ 67.00per share for $ 250,000. In connection with the issuance of the note and the warrant, the Company paid a $ 12,500commitment fee. The proceeds from the sale of the note and warrant are for general working capital purposes.

| F-42 |

Due to the variable conversion price of the convertible promissory note, pursuant to the Purchase Agreement Amendment, the embedded conversion feature was accounted for as a derivative liability. The fair value of the derivative liability at issuance amounting to $ 118,984was recorded as debt discount and amortized over the term of the note.

During the nine months ended September 30, 2024, $ 1,144,900of note principal was converted to 571,531shares of common stock. As of September 30, 2024, the outstanding balance on the notes was $ 355,100, net of debt discount of $ 160,056, and totaling $ 195,044. For the nine months ended September 30, 2024 and 2023, amortization of debt discounts totaled $ 858,614and $ 88,618, respectively.

Agile Lending, LLC Loans

On June 14, 2023, the Company, through its subsidiary Keeler & Co. (“Borrowers”) entered into a subordinated business loan and security agreement with Agile Lending, LLC as lead lender (“Agile”) and Agile Capital Funding, LLC as collateral agent,