Stryve Foods, Inc. Transforms Balance Sheet Issuing $9.4 Million of Preferred Stock to Retire Debt

Core Viewpoint - Stryve Foods, Inc. has successfully completed a significant financial transaction aimed at strengthening its balance sheet and enhancing its path to profitability by eliminating $8.7 million of maturing liabilities through the issuance of preferred stock [2][3][5]. Financial Transaction Details - The company issued 877,878 shares of Series A-1 Convertible Preferred Stock, valued at approximately $10.71 per share, totaling $9.4 million [3]. - The transaction closed on January 30, 2025, and was priced at a premium to market [3]. - This strategic move significantly improves Stryve's financial flexibility and capital structure by retiring a substantial portion of its outstanding debt obligations [3][7]. Insider Participation - Insiders have invested approximately $3.0 million in the preferred stock, with CEO Chris Boever contributing $2.7 million, reflecting strong confidence in the company's future [4][7]. Management's Perspective - The CEO stated that this transaction is a major milestone in the company's transformation efforts, aiming to allow investors to value the company based on its business rather than its capital structure [5]. - The CFO emphasized that the transaction effectively addresses upcoming debt maturities while preserving the ability to raise additional capital for long-term growth [7]. Preferred Stock Terms - The preferred equity is convertible into Class A common stock at a conversion price of $0.7599 per share, representing approximately 12.4 million shares on an as-converted basis [8]. - Preferred shares accrue dividends at 12% per annum, payable in cash or additional preferred stock at the company's discretion [8]. - The company has the right to redeem the preferred stock at 102% of the stated value, plus any unpaid accrued dividends, starting two years after issuance [8]. Company Overview - Stryve Foods is a premium air-dried meat snack company focused on high-protein, health-conscious snacking, with brands including Braaitime®, Kalahari®, Stryve®, and Vacadillos® [9]. - The company aims to disrupt traditional snacking categories by offering products that are lower in sugar and carbohydrates while being higher in protein [9][10].