Company: BSFC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021887
Chunk: 22

Company: Blue Star Foods Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 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 a 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 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
$1,800,000 and 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 $300,000 and a warrant to purchase 3,505 shares of common stock of the Company at an exercise price of $67.00 per share for
$250,000. In connection with the issuance of the note and the warrant, the Company paid a $12,500 commitment fee. The proceeds from the
sale of