Blue Star Foods (NASDAQ: BSFC) saw its stock surge over 25% in after-hours trading on Wednesday following the announcement of a 1-for-50 reverse stock split.
Blue Star Foods (BSFC) recently revealed plans to implement a 1-for-50 reverse stock split of its authorized, issued, and outstanding shares of Class A common stock, with a par value of $0.0001 per share. The reverse stock split will take effect at 12:01 a.m. Eastern Time on May 20, 2024.
Under the terms of the Reverse Stock Split, every 50 shares of issued and outstanding common stock will be automatically reclassified into one new share of Common Stock. The total number of authorized shares of common stock will remain at 100 million.
In addition, Blue Star Foods will apply proportional adjustments to outstanding equity awards, warrants, convertible notes, and the number of shares issued and issuable under its stock incentive plans and certain existing agreements. The company will not issue fractional shares; instead, we will round up all fractional shares. Importantly, the reverse stock split will uniformly affect all common stockholders and will not alter any stockholder’s percentage interest in the Company’s equity.
Blue Star’s Common Stock will continue trading on The Nasdaq Capital Market under the existing symbol “BSFC” and will commence trading on a split-adjusted basis when the market opens on May 20, 2024. The new CUSIP number for the Common Stock post-split will be 09606H309.
Why Reverse Stock Split?
The Company primarily intends the Reverse Stock Split to bring it into compliance with the $1.00 minimum bid price requirement to maintain its listing on Nasdaq. However, there is no assurance that this action will meet the minimum bid price requirement.
The Company’s board of directors approved the decision to implement the reverse stock split during their meeting on May 7, 2024, following shareholder approval of a reverse stock split of up to 1-for-50 shares on April 30, 2024.
Blue Star Foods (NASDAQ: BSFC) Stock Movement
As of 07:59 p.m. (Eastern Time) Wednesday, BSFC stock traded at $0.0820, marking a 27.13% increase compared to the previous trading session.
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