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
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.
Better Choice Company (NYSE: BTTR) ha firmato un foglio di termini non vincolante per vendere la sua attività Halo in Asia a CZC Company per 6,5 milioni di dollari in contanti al momento della chiusura, più una royalty del 3% sulle vendite per cinque anni con un minimo garantito di 330.000 dollari all'anno (1,65 milioni di dollari in totale).
Il compratore ha già versato un deposito non rimborsabile di 500.000 dollari, e entrambe le parti hanno scambiato la prima bozza dell'accordo definitivo. Better Choice manterrà la proprietà delle sue operazioni in Nord America e nel resto del mondo, con la transazione che dovrebbe chiudere nel primo trimestre del 2025. L'azienda considera questa vendita una mossa strategica per rafforzare il proprio bilancio e concentrare la propria crescita al di fuori dell'Asia.
Better Choice Company (NYSE: BTTR) ha firmado un acuerdo de términos no vinculante para vender su negocio Halo en Asia a CZC Company por 6,5 millones de dólares en efectivo al cierre, más una regalía del 3% sobre las ventas durante cinco años con un mínimo garantizado de 330.000 dólares anuales (1,65 millones de dólares en total).
El comprador ya ha pagado un depósito no reembolsable de 500.000 dólares, y ambas partes han intercambiado el primer borrador del acuerdo definitivo. Better Choice mantendrá la propiedad de sus operaciones en América del Norte y en el resto del mundo, y se espera que la transacción se cierre en el primer trimestre de 2025. La empresa ve esta venta como un movimiento estratégico para fortalecer su balance y centrarse en el crecimiento de sus operaciones fuera de Asia.
베터 초이스 컴퍼니(NYSE: BTTR)는 아시아에서 계열사인 Halo 사업을 CZC 회사에 650만 달러의 현금으로 매각하기 위한 비구속 조건서를 체결했습니다. 또한, 5년 동안 판매액의 3%의 로열티와 연간 보장 최소 금액 33만 달러 ($165만 총액)도 포함됩니다.
구매자는 이미 50만 달러의 환불 불가 보증금을 지불했으며, 양 당사자는 최종 계약서의 첫 초안을 교환했습니다. 베터 초이스는 북미 및 기타 지역의 운영에 대한 소유권을 유지하며, 계약은 2025년 1분기 동안 종료될 것으로 예상됩니다. 이 회사는 이번 판매를 재무 상태를 강화하고 아시아 외 지역에서 운영을 성장시키는 데 초점을 맞추기 위한 전략적 결정으로 보고 있습니다.
Better Choice Company (NYSE: BTTR) a signé une feuille de termes non contraignante pour vendre son activité Halo en Asie à CZC Company pour 6,5 millions de dollars en espèces lors de la clôture, plus une redevance de 3% sur les ventes pendant cinq ans avec un montant minimum garanti de 330.000 dollars par an (1,65 million de dollars au total).
L'acheteur a déjà versé un acompte non remboursable de 500.000 dollars, et les deux parties ont échangé le premier projet de l'accord définitif. Better Choice conservera la propriété de ses opérations en Amérique du Nord et dans le reste du monde, la transaction devant être conclue au premier trimestre 2025. L'entreprise considère cette vente comme un mouvement stratégique pour renforcer son bilan et se concentrer sur la croissance de ses activités en dehors de l'Asie.
Better Choice Company (NYSE: BTTR) hat ein unverbindliches Term Sheet unterzeichnet, um ihr Halo-Geschäft in Asien für 6,5 Millionen Dollar in bar bei Abschluss an die CZC Company zu verkaufen, zuzüglich einer 3%igen Lizenzgebühr auf die Verkäufe über fünf Jahre mit einer garantierten Mindestzahlung von 330.000 Dollar jährlich (insgesamt 1,65 Millionen Dollar).
Der Käufer hat bereits eine nicht rückzahlbare Anzahlung von 500.000 Dollar geleistet, und beide Parteien haben den ersten Entwurf des endgültigen Vertrags ausgetauscht. Better Choice wird das Eigentum an seinen nordamerikanischen und globalen Aktivitäten behalten, wobei der Abschluss der Transaktion im ersten Quartal 2025 erwartet wird. Das Unternehmen betrachtet diesen Verkauf als strategischen Schritt zur Stärkung seiner Bilanz und zur Konzentration auf das Wachstum seines Geschäftsbetriebs außerhalb Asiens.
- 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
- Divestment of Asian market presence and related growth potential
- Non-binding nature of the term sheet indicates deal uncertainty
Insights
This strategic divestiture represents a significant financial catalyst for Better Choice Company, with the total consideration of
- The immediate
$6.5 million cash injection could substantially strengthen the balance sheet while maintaining future upside through the royalty structure - The guaranteed minimum royalty of
$330,000 annually provides predictable revenue streams without operational costs - The
$500,000 non-refundable deposit signals strong buyer commitment and reduces transaction risk
The decision to retain North American operations while monetizing Asian assets appears strategically sound, potentially allowing for more focused capital allocation in core markets. The timing of this announcement, coupled with the previously disclosed SRx Health Solutions transaction, suggests a broader corporate restructuring aimed at unlocking shareholder value. The expected Q1 2025 closing provides a near-term catalyst for value realization.
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
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