Better Choice Company Signs Non-Binding Term Sheet to Sell Halo Asia for $6.5 Million in Cash at Closing and a 5-Year Royalty Valued at a Minimum of $1.65 Million
Rhea-AI Summary
Better Choice Company (NYSE: BTTR) has signed a non-binding term sheet to sell its Halo business in Asia to CZC Company for $6.5 million in cash at closing, plus a 3% royalty on sales over five years with a guaranteed minimum of $330,000 annually ($1.65 million total).
The buyer has already paid a $500,000 non-refundable deposit, and both parties have exchanged the first draft of the definitive agreement. Better Choice will retain ownership of its North American and rest-of-world operations, with the transaction expected to close in Q1 2025. The company views this sale as a strategic move to strengthen its balance sheet and focus on growing its operations outside Asia.
Positive
- Sale of Asian operations for $6.5M cash plus $1.65M minimum royalties over 5 years
- Receipt of $500,000 non-refundable deposit
- Balance sheet strengthening through cash injection
- Retention of North American and rest-of-world operations
Negative
- Divestment of Asian market presence and related growth potential
- Non-binding nature of the term sheet indicates deal uncertainty
News Market Reaction 1 Alert
On the day this news was published, BTTR declined 5.80%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Upon closing, Better Choice will retain ownership of North American and rest-of-world ex Asia operations
Buyer has paid a
TAMPA, Fla., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (NYSE American: BTTR) (“Better Choice” or the “Company”), a pet health and wellness company, is pleased to announce it has signed a non-binding term sheet with its existing partner in Asia, CZC Company LTD (the “Buyer”), to sell its Halo business in Asia for
Pursuant to the terms of the transaction, Better Choice will retain ownership of its significant North American and rest-of-world operations.
While the definitive agreement has not yet been finalized, the Buyer has paid a
“We continue to strategically explore creating shareholder value and are pleased with the progress of this transaction,” said Michael Young, Chairman of Better Choice. “This sale will further strengthen our balance sheet and allow us to further concentrate on growing our North American and global operations. The deposit and agreement draft demonstrate the Buyer’s commitment to close on the transaction in a timely manner. We look forward to keeping shareholders informed as we continue to execute on our strategic plans, including updates on our previously announced transaction with SRx Health Solutions Inc. and future growth initiatives.”
About Better Choice Company Inc.
Better Choice Company Inc. is a rapidly growing pet health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier, and longer lives. We take an alternative, nutrition-based approach to pet health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted pet health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell the majority of our dog food, cat food and treats under the Halo brand, which is focused, respectively, on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food and treats. For more information, please visit https://www.betterchoicecompany.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
Better Choice Company, Inc.
Kent Cunningham, CEO
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
FAQ
How much is Better Choice Company (BTTR) selling its Halo Asia business for?
When is the BTTR Halo Asia sale expected to close?
What deposit has been paid for the BTTR Halo Asia acquisition?
What operations will Better Choice (BTTR) retain after the Halo Asia sale?
What is the minimum guaranteed royalty payment in the BTTR Halo Asia deal?
