Smart for Life Provides Update on Prospective Acquisitions

Rhea-AI Summary

Smart for Life (Nasdaq: SMFL), a leader in Health & Wellness, has provided an update on its acquisition pipeline and M&A activities. The company is currently negotiating four profitable Health & Wellness acquisitions and exploring additional prospects as part of its post-restructuring strategy. These targets include Purely Optimal Nutrition, a liquid manufacturer, an established supplement brand, and a wholesale manufacturer and distributor.

The company aims to acquire profitable companies in the nutritional supplements and functional foods sectors, targeting U.S. and foreign nutraceutical companies with $5 million to $25 million in annual revenue. Smart for Life remains committed to reaching its $100 million revenue goal through organic growth and strategic acquisitions.

However, the company is currently delinquent in filing its Form 10-Q reports for the periods ended March 31, 2024, and June 30, 2024, which serves as an additional basis for the potential delisting of its securities from The Nasdaq Capital Market.

Positive

• Negotiating four profitable Health & Wellness acquisitions
• Targeting companies with $5 million to $25 million in annual revenue
• Aiming for $100 million revenue goal through organic growth and acquisitions

Negative

• Delinquent in filing Form 10-Q reports for Q1 and Q2 2024
• Potential delisting from Nasdaq Capital Market due to filing delays
• Completion of acquisitions subject to due diligence and financing

Multiple Acquisitions in Pipeline; Ranging from Definitive Agreement to Exploratory Discussions as Phase 2 of the Company’s Post-Restructuring Initiatives; Company Provides Update on Timing for Form 10-Q

MIAMI, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a distinguished leader in the Health & Wellness sector specializing in the marketing and manufacturing of nutritional supplements and foods, today provided an update on the potential expansion of the Company’s acquisition pipeline and an update on its M&A activities.

Currently, the Company is negotiating four profitable Health & Wellness acquisitions and exploring additional prospects as part of its post-restructuring strategy. These targets include Purely Optimal Nutrition, a liquid manufacturer, an established supplement brand, and a wholesale manufacturer and distributor.

Chairman A.J. Cervantes, Jr. stated, "We are on track with several potentially transformative strategic transactions. Once we finalize our upcoming 10-K and 10-Q filings, we plan to substantially accelerate our M&A activity, leveraging the potential acquisitions we've already identified. We are focused on acquiring profitable companies in the nutritional supplements and functional foods sectors. With restructuring complete, we are aggressively advancing our M&A efforts. We are targeting U.S. and foreign nutraceutical companies with $5 million to $25 million in annual revenue, prioritizing innovation, quality, and organic growth."

CEO Darren Minton added, "While there is no assurance that any particular acquisition will be completed, we believe the growing acquisition pipeline creates an enormous prospective opportunity for the Company. We remain committed to reaching our $100 million revenue goal through organic growth and strategic acquisitions."

Completion of any acquisitions in the Company’s pipeline is subject to a number of conditions including successful due diligence and financing.

Form 10-Q Report

As previously disclosed, on May 21, 2024, the Company received a notification letter from Nasdaq indicating that the Company is now delinquent in filing its Form 10-Q for the period ended March 31, 2024, which serves as an additional basis for the delisting of the Company’s securities from The Nasdaq Capital Market. The letter stated that the hearings panel will consider this matter in rendering a determination regarding the Company’s continued listing on Nasdaq.

On August 20, 2024, the Company received an additional notification letter from Nasdaq indicating that the Company is now delinquent in filing its Form 10-Q for the period ended June 30, 2024, which serves as an additional basis for the delisting of the Company’s securities from The Nasdaq Capital Market. The letter stated that the hearings panel will consider this matter in rendering a determination regarding the Company’s continued listing on Nasdaq. In that regard, the letter stated that the Company should present its views with respect to this additional deficiency to the hearings panel no later than August 27, 2024.

The Company management anticipates filing the Form 10-Q report upon completion of the Company’s audit.

About Smart for Life, Inc.

Smart for Life, Inc. (Nasdaq: SMFL) is an emerging growth company in the nutraceutical industry, committed to delivering innovative solutions that promote Health & Wellness. With a focus on research-driven formulations and consumer-centric approaches, Smart for Life is dedicated to redefining the boundaries of nutritional science. The Company is engaged in the development, marketing, manufacturing, acquisition, operation and sale of a broad spectrum of nutritional and products. Structured as a publicly held holding company, the Company is executing a Buy-and-Build strategy with serial accretive acquisitions creating a vertically integrated company. To drive growth and earnings, Smart for Life is developing proprietary and related products as well as acquiring other profitable companies, encompassing brands, manufacturing and distribution channels. The Company recently concluded the execution of a restructuring plan including recapitalization of the Company with equity and debt financings, the sale of certain non-performing assets, and the successful liquidation of the Company’s senior debt facility. In addition, the Company converted substantial debt obligations to equity materially improving the Company’s balance sheet. For more information about Smart for Life, please visit: www.smartforlifecorp.com.

Forward-Looking Statements

This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management’s beliefs, assumptions and expectations of Smart for Life’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Smart for Life does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. No assurances can be made that Smart for Life will successfully acquire its acquisition targets. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause Smart for Life’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the Securities and Exchange Commission.

Disclaimer

The information provided in this press release is intended for general knowledge only and is not a substitute for professional medical advice or treatment for specific medical conditions. Always seek the advice of your physician or other qualified health care provider with any questions you may have regarding a medical condition. This information is not intended to diagnose, treat, cure or prevent any disease.

Investor Relations Contact

Crescendo Communications, LLC
Tel: (212) 671-1021
SMFL@crescendo-ir.com

FAQ

What acquisitions is Smart for Life (SMFL) currently pursuing?

Smart for Life is negotiating four profitable Health & Wellness acquisitions, including Purely Optimal Nutrition, a liquid manufacturer, an established supplement brand, and a wholesale manufacturer and distributor.

What is Smart for Life's (SMFL) revenue target for acquisitions?

Smart for Life is targeting U.S. and foreign nutraceutical companies with annual revenues between $5 million and $25 million.

What is Smart for Life's (SMFL) overall revenue goal?

Smart for Life remains committed to reaching a $100 million revenue goal through a combination of organic growth and strategic acquisitions.

Why is Smart for Life (SMFL) at risk of being delisted from Nasdaq?

Smart for Life is at risk of being delisted from Nasdaq due to delinquency in filing its Form 10-Q reports for the periods ended March 31, 2024, and June 30, 2024.