The Blue Star Foods Corp (NASDAQ: BSFC) stock price rallied 29.6% despite the company not making any announcements as retail investor interest soared. The lack of news releases from the company indicates that the buying pressure drove the rally.
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Looking at the previous releases from the company, we can see that it raised $1.8 million via an underwritten offering of common stock. The sustainable seafood company sold 9 million common shares at $0.20 each and pre-funded warrants to buy the common stock.
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Earlier on February 1, 2023, the company engaged the services of ShareIntel to investigate whether illegal short selling was behind the massive decline in its share price, which has fallen 90.69% over the past 12 months.
Blue Star Foods was concerned that illegal short selling could have been behind the decline in its share price, and ShareIntel will help investigate the same. Still, the company’s share price is trading way below the Nasdaq’s mining requirement of $1.00.
The seafood company might have to conduct a reverse stock split to align its share price with the Nasdaq’s rules. The company’s share price first fell below $1.00 in September 2022 and dipped below the crucial level for the second time in early November.
In January, the company signed a supply agreement worth $4 million annually with Just Food for Dogs. The initial contract for 2023 could earn the company the entire amount, significantly boosting its revenues and maybe share price in future.
Blue Star Foods is focused on Recirculatory Aquaculture Systems (RAS) as a sustainable seafood company as it has integrated Environmental, Social, and Governance (ESG) practices across its entire value chain.
Given its unique value proposition, the company’s prospects look promising, and investors hope that today’s rally will translate into a sustained uptrend.
*This is not investment advice.
The Blue Star Foods (BSFC) stock price.
The Blue Star Foods (BSFC) stock price rallied 29.57% to trade at $0.2112, from Thursday’s closing price of $0.1630.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.