Core Insights - Better Choice Company, Inc. has successfully sold its Asian business through its subsidiary Halo, Purely for Pets, Inc. for total gross proceeds of $8.1 million, which includes $6.5 million in cash and a 5-year royalty agreement [1][3][4] - The transaction allows Better Choice to focus on its core health and wellness product portfolio while creating an additional revenue stream through the royalty arrangement [3][4] - The sale is part of the company's strategy to maximize shareholder value by optimizing its asset portfolio and improving financial flexibility [3][4] Financial Details - The cash proceeds from the sale amount to $6.5 million, equating to $3.34 per share based on 2,422,005 shares outstanding as of March 25, 2025 [1] - The royalty agreement guarantees a minimum total payment of $1.65 million over five years, with a minimum annual payment of $330,000 based on a 3% royalty on sales [1] Strategic Focus - Halo will retain ownership of its key North American operations and global operations outside of Asia, allowing the company to concentrate on its core markets and strategic initiatives [2] - The Chairman of Better Choice emphasized the importance of this strategic transaction in strengthening the balance sheet and focusing resources on core offerings [4] - The company may consider stock repurchase programs, further dividends, or allocation of cash reserves into alternative investments such as silver and gold to maximize shareholder value [4] Company Overview - Better Choice Company, Inc. is a growing pet health and wellness company that focuses on nutrition-based approaches to pet health, positioning its brands to benefit from trends in pet humanization and consumer health awareness [5] - The company sells a majority of its products under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed options for pet food [5]
Better Choice Sells Halo's Business in Asia for $8.1 Million in Total Gross Proceeds Including $6.5 Million in Cash Up Front, the Equivalent of $3.34 Per Share