Better Choice Company Provides Shareholder Update on Balance Sheet

Rhea-AI Summary

Better Choice Company (NYSE American: BTTR) has provided shareholders with an update on its pro-forma and as-adjusted balance sheet. The company reported a 6% increase in Pro Forma Adjusted Net Tangible Book Value Per Share (NTBVPS) to $4.07 and a 16% increase in Pro Forma Adjusted Net Current Asset Value Per Share (NCAVPS) to $3.94. These figures are based on the company's financial position as of June 30, 2024, and take into account the recent public offering and a settlement agreement with Alphia, Inc.

The company also highlighted its pending acquisition of SRx Health Solutions Inc., which is expected to close in Q4 2024, subject to stockholder approvals and other customary conditions. Better Choice's Chairman, Michael Young, expressed optimism about the potential additional value this acquisition could bring to shareholders.

Positive

• Pro Forma Adjusted Net Tangible Book Value Per Share increased 6% to $4.07
• Pro Forma Adjusted Net Current Asset Value Per Share increased 16% to $3.94
• Successful settlement of $4.7 million in trade accounts payable at a 56% discount
• Pending acquisition of SRx Health Solutions Inc. expected to close in Q4 2024

Negative

• None.

Insights

Financial Analyst

The update on Better Choice Company's balance sheet reveals some positive trends. The 6% increase in Pro Forma Adjusted Net Tangible Book Value Per Share (NTBVPS) to $4.07 and the 16% rise in Pro Forma Adjusted Net Current Asset Value Per Share (NCAVPS) to $3.94 indicate improved financial health. These metrics are important for assessing the company's intrinsic value.

The pro-forma adjustments, including the recent public offering and the favorable settlement of trade accounts payable at a 56% discount, have positively impacted the balance sheet. This debt reduction strategy could lead to improved financial flexibility and lower interest expenses in the future.

However, investors should note that these figures are pro-forma and adjusted, not actual reported financials. The pending acquisition of SRx Health adds an element of uncertainty, as its impact on the company's financials post-closing remains to be seen. Shareholders should closely monitor the integration process and any synergies realized from this acquisition.

Market Research Analyst

Better Choice Company's update comes at a critical time in the pet health and wellness industry. The sector has seen robust growth, driven by increased pet ownership and heightened focus on pet health. This positions Better Choice favorably, but competition remains fierce.

The company's improved balance sheet metrics could enhance its ability to compete and potentially fund future growth initiatives. The acquisition of SRx Health suggests a strategic move to expand its market presence or product offerings. However, the success of this strategy will depend on effective integration and market reception.

Investors should consider the broader industry trends, such as the shift towards premium pet products and the growing influence of e-commerce in pet retail. Better Choice's ability to capitalize on these trends while maintaining its improved financial position will be important for long-term success in this dynamic market.

Pro Forma Adjusted Net Tangible Book Value Per Share (NTBVPS) Increases 6% to $4.07 per share

Pro Forma Adjusted Net Current Asset Value Per Share (NCAVPS) Increases 16% to $3.94 per share

TAMPA, Fla., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (NYSE American: BTTR) (“Better Choice” or the “Company”), a pet health and wellness company, today provides shareholders with an update on its pro-forma and as-adjusted balance sheet.

Michael Young, Better Choice Chairman of the Board, commented, “We are pleased to provide our shareholders with an update on our balance sheet, before the anticipated closing of our acquisition of SRx Health. Net of debt, Better Choice cash and other current assets as of June 30, 2024 was $3.94 per share². After the closing of our SRx acquisition, we believe there to be additional value to our shareholders.”

As of June 30, 2024, on a pro-forma and as-adjusted basis, Better Choice had an adjusted net tangible book value (“NTBV”) of $10.9 million, or $4.07 per share¹. Additionally, pro-forma and as-adjusted net current asset value (“NCAV”) was $10.6 million, or $3.94 per share². The pro-forma and as-adjusted values give effect to: (i) the consummation of the Company’s registered public offering of its common stock and prefunded warrants as described in the Company’s prospectus filed with the SEC on July 31, 2024 (the “Offering”); and (ii) payment of $4.7 million of trade accounts payable at an approximate 56% discount pursuant to the previously announced settlement agreement entered into on June 20, 2024 with Alphia, Inc.

As previously announced, Better Choice has entered into a definitive agreement to acquire SRx Health Solutions Inc. (“SRx Health”). The transaction has been approved by the Board of Directors of both companies. The closing of the transaction is subject to customary closing conditions, including the receipt of required stockholder approvals from SRx Health and Better Choice. The transaction is expected to close in the fourth quarter of 2024.

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

^{(1) Net tangible book value per share is determined by dividing our total tangible assets, less total liabilities, by 2.7 million shares outstanding immediately after the Offering assuming exercise of all 1,028,000 pre-funded warrants sold (the “Pre-Funded Warrants”), on a pro-forma and as adjusted basis giving effect to the above referenced items.
(2) Net current asset value per share is determined by dividing total current assets, less total current liabilities, by 2.7 million shares outstanding immediately after the Offering assuming exercise of all the Pre-Funded Warrants, on a pro-forma and as adjusted basis giving effect to the above referenced items.}

FAQ

What is Better Choice Company's (BTTR) current Pro Forma Adjusted Net Tangible Book Value Per Share?

As of June 30, 2024, Better Choice Company's (BTTR) Pro Forma Adjusted Net Tangible Book Value Per Share is $4.07, representing a 6% increase.

What is Better Choice Company's (BTTR) current Pro Forma Adjusted Net Current Asset Value Per Share?

As of June 30, 2024, Better Choice Company's (BTTR) Pro Forma Adjusted Net Current Asset Value Per Share is $3.94, representing a 16% increase.

When is Better Choice Company (BTTR) expected to close its acquisition of SRx Health Solutions?

Better Choice Company (BTTR) expects to close its acquisition of SRx Health Solutions in the fourth quarter of 2024, subject to stockholder approvals and other customary closing conditions.

How much did Better Choice Company (BTTR) save through its recent settlement agreement with Alphia, Inc.?

Better Choice Company (BTTR) settled $4.7 million of trade accounts payable with Alphia, Inc. at an approximate 56% discount, as announced on June 20, 2024.