Better Choice Company Inc. Announces Closing of Public Offering

Rhea-AI Summary

Better Choice Company Inc. (NYSE American: BTTR) has successfully closed its public offering, raising approximately $5 million in gross proceeds. The offering included 639,000 shares of common stock and Pre-Funded Warrants to purchase 1,280,000 shares, both priced at $3.00 per share. ThinkEquity acted as the sole book-running manager for the offering. The company plans to use the net proceeds for general corporate purposes, including working capital, sales and marketing, and operating expenses. Additionally, Better Choice has granted the underwriters a 45-day option to purchase up to an additional 100,000 shares of common stock and/or Pre-Funded Warrants at the public offering price less the underwriting discount.

Positive

• Successful closing of public offering, raising $5 million in gross proceeds
• Potential for additional capital through underwriters' 45-day option
• Funds to be used for general corporate purposes, potentially supporting growth initiatives

Negative

• Potential dilution of existing shareholders due to issuance of new shares
• Offering price of $3.00 per share may be below current market price, impacting stock valuation

Insights

Financial Analyst

Better Choice Company's recent public offering marks a significant move to bolster its financial position. The company raised approximately $5 million in gross proceeds, which could potentially increase if the underwriters exercise their option for additional shares. This capital injection is important for a company operating in the competitive pet health and wellness sector.

The offering structure, combining common stock and Pre-Funded Warrants, is noteworthy. This approach allows Better Choice to maximize its fundraising potential while offering flexibility to investors. The $3.00 per share price point suggests a strategic decision to attract a broader investor base.

However, investors should be cautious. The company's intention to use the proceeds for "general corporate purposes" is quite vague. Without specific allocation plans, it's challenging to gauge how effectively this capital will drive growth or improve the company's market position. Moreover, the dilutive effect of this offering on existing shareholders is a concern that warrants attention.

From a market perspective, the successful closing of this offering amid challenging economic conditions could be seen as a vote of confidence in Better Choice's business model. However, the company's ability to translate this capital into tangible growth and profitability will be the true test moving forward.

Market Research Analyst

The pet health and wellness market has been experiencing robust growth, driven by increasing pet ownership and a trend towards premium pet care products. Better Choice Company's successful public offering indicates investor interest in this sector, despite broader market volatility.

However, it's important to contextualize this within the competitive landscape. Major players like Nestle Purina and Mars Petcare dominate the market, leaving smaller companies like Better Choice to carve out niche positions. The $5 million raised, while significant for Better Choice, is relatively modest in the context of the broader industry.

The company's focus on "sales and marketing" in their use of proceeds suggests a strategy to increase market share. This could be particularly important given the crowded nature of the pet wellness space. However, without more specific details on their go-to-market strategy, it's difficult to assess the potential impact of this investment.

Investors should also consider the broader economic environment. While pet care has traditionally been resilient during economic downturns, inflationary pressures could impact consumer spending on premium pet products. Better Choice's ability to navigate these macroeconomic challenges will be important to its success.

Overall, while this offering provides Better Choice with additional resources to compete, the company's execution and ability to differentiate in a crowded market will be key factors to watch in the coming months.

Tampa, Florida, July 31, 2024 (GLOBE NEWSWIRE) -- Better Choice Company Inc. (NYSE American: BTTR) (the “Company” or (“Better Choice”), a pet health and wellness company, today announced the closing of its public offering of 639,000 shares of its common stock and Pre-funded warrants to purchase 1,280,000 shares of its common stock (“Pre-Funded Warrants”). Each share of common stock and Pre-Funded Warrant was sold at a public offering price of $3.00 per share (inclusive of the Pre-Funded Warrant exercise price), for gross proceeds of approximately $5 million, before deducting underwriting discounts and offering expenses. In addition, Better Choice has granted the underwriters a 45-day option to purchase up to an additional 100,000 shares of common stock and/or Pre-Funded Warrants at the public offering price less the underwriting discount.

The Company intends to use the net proceeds from this offering for general corporate purposes, including working capital, sales and marketing, and operating expenses.

ThinkEquity acted as sole book-running manager for the offering.

A registration statement on Form S-1 (File No. 333-280714) relating to the offering was filed with the Securities and Exchange Commission (“SEC”) and became effective on July 29, 2024. The offering was made only by means of a prospectus. The final prospectus relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus may also be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 did Better Choice Company (BTTR) raise in its recent public offering?

Better Choice Company (BTTR) raised approximately $5 million in gross proceeds from its recent public offering.

What was the price per share in Better Choice Company's (BTTR) public offering?

The public offering price was $3.00 per share for both common stock and Pre-Funded Warrants.

How does Better Choice Company (BTTR) plan to use the proceeds from the offering?

Better Choice Company intends to use the net proceeds for general corporate purposes, including working capital, sales and marketing, and operating expenses.

Who was the underwriter for Better Choice Company's (BTTR) public offering?

ThinkEquity acted as the sole book-running manager for Better Choice Company's public offering.