10-K: Blue Star Foods Corp. Secures $122,490 Subordinated Loan from Agile Lending, LLC

Blue Star Foods Corp. and its subsidiaries have entered into a subordinated secured promissory note with Agile Lending, LLC for $122,490.68, with repayment terms tied to a prior loan agreement.

Summary

• Blue Star Foods Corp. and its subsidiaries, including John Keeler & Co. Inc., have jointly and severally promised to pay Agile Lending, LLC $122,490.68.
• This amount is tied to a term loan under a Business Loan and Security Agreement dated October 19, 2023.
• The entire principal and accrued interest are due on the Maturity Date as set forth in the Loan Agreement.
• The note is secured as provided under the Loan Agreement.
• The obligations under this note are subordinated to the prior payment of all Senior Indebtedness.
• The note is governed by the laws of the Commonwealth of Virginia.
• The right to the principal and interest may only be transferred if registered on a record of ownership maintained by the Lender.
• Borrower waives any right to a trial by jury in any action relating to this note or the loan documents.

Sentiment

Score: 5

Explanation: The document is a standard financial agreement, with no clear positive or negative sentiment. It indicates a need for financing but does not provide enough information to assess the overall financial health of the company.

Negatives

• The loan is subordinated to all Senior Indebtedness, indicating a higher risk for this loan.
• The Borrower has waived the right to a jury trial, which could be a disadvantage in legal disputes.

Risks

• The loan is subordinated, meaning other debts take priority in repayment.
• The waiver of a jury trial could limit the Borrowers options in legal proceedings.
• The document references a prior loan agreement, suggesting existing financial obligations.

Future Outlook

The document does not contain any specific forward-looking statements, but it does reference a prior loan agreement, suggesting ongoing financial obligations.

Industry Context

This type of financing is common in the food industry, where companies often use debt to fund operations and acquisitions. The subordination of the loan suggests a higher risk profile for the lender.

Comparison to Industry Standards

• Subordinated debt is a common financing tool, especially for companies with existing senior debt.
• The interest rate and terms of the loan are not disclosed, making it difficult to compare to industry benchmarks.
• The waiver of a jury trial is not uncommon in commercial loan agreements, but it is a significant concession by the borrower.

Stakeholder Impact

• Shareholders may be concerned about the subordinated nature of the debt.
• Creditors may view the subordination as a risk factor.
• Employees may be indirectly affected by the companys financial decisions.

Key Dates

Keywords

subordinated loan, promissory note, secured debt, Agile Lending, Blue Star Foods, loan agreement, senior indebtedness, term loan