Better Choice Sells Halo’s Business in Asia for $8.1 Million in Total Gross Proceeds Including $6.5 Million in Cash Up Front, the Equivalent of $3.34 Per Share
Better Choice Company (NYSE: BTTR) has announced the successful sale of its Halo subsidiary's Asian business to CZC Company for $8.1 million in total gross proceeds. The deal includes $6.5 million in upfront cash (equivalent to $3.34 per share based on 2,422,005 shares outstanding as of March 25, 2025) and a 5-year royalty agreement.
The royalty agreement guarantees a minimum total payment of $1.65 million, based on a 3% royalty on sales over five years, with a minimum annual payment of $330,000. Halo, remaining wholly-owned by Better Choice, will retain its North American and global operations outside of Asia.
The transaction aims to strengthen the company's balance sheet and focus resources on core health and wellness offerings. Management indicates potential uses of the proceeds may include stock repurchase programs, dividends, or allocation into alternative assets.
Better Choice Company (NYSE: BTTR) ha annunciato la vendita con successo del ramo asiatico della sua controllata Halo alla CZC Company per un ricavo lordo totale di 8,1 milioni di dollari. L'accordo prevede un pagamento anticipato in contanti di 6,5 milioni di dollari (equivalente a 3,34 dollari per azione, basato su 2.422.005 azioni in circolazione al 25 marzo 2025) e un contratto di royalty della durata di 5 anni.
Il contratto di royalty garantisce un pagamento minimo complessivo di 1,65 milioni di dollari, calcolato su una royalty del 3% sulle vendite per cinque anni, con un pagamento minimo annuo di 330.000 dollari. Halo, che rimane interamente di proprietà di Better Choice, manterrà le sue operazioni in Nord America e a livello globale al di fuori dell’Asia.
La transazione mira a rafforzare il bilancio della società e a concentrare le risorse sulle offerte principali nel settore della salute e del benessere. La direzione indica che i proventi potrebbero essere utilizzati per programmi di riacquisto azionario, dividendi o investimenti in asset alternativi.
Better Choice Company (NYSE: BTTR) ha anunciado la exitosa venta de la división asiática de su subsidiaria Halo a CZC Company por un total bruto de 8,1 millones de dólares. El acuerdo incluye un pago inicial en efectivo de 6,5 millones de dólares (equivalente a 3,34 dólares por acción, basado en 2.422.005 acciones en circulación al 25 de marzo de 2025) y un contrato de regalías por 5 años.
El acuerdo de regalías garantiza un pago mínimo total de 1,65 millones de dólares, basado en un 3% de regalías sobre las ventas durante cinco años, con un pago mínimo anual de 330.000 dólares. Halo, que seguirá siendo propiedad total de Better Choice, mantendrá sus operaciones en Norteamérica y a nivel global fuera de Asia.
La transacción busca fortalecer el balance de la compañía y enfocar los recursos en las ofertas principales de salud y bienestar. La dirección indica que los ingresos podrían destinarse a programas de recompra de acciones, dividendos o inversiones en activos alternativos.
Better Choice Company (NYSE: BTTR)는 자회사 Halo의 아시아 사업부를 CZC Company에 총 810만 달러의 총 수익으로 성공적으로 매각했다고 발표했습니다. 이번 거래에는 선불 현금 650만 달러(2025년 3월 25일 기준 발행주식 2,422,005주 기준 주당 3.34달러 상당)와 5년간의 로열티 계약이 포함됩니다.
로열티 계약은 5년간 매출의 3%를 기준으로 최소 총 지급액 165만 달러를 보장하며, 연간 최소 지급액은 33만 달러입니다. Better Choice가 전액 소유하는 Halo는 아시아를 제외한 북미 및 글로벌 사업을 유지할 예정입니다.
이번 거래는 회사의 재무구조를 강화하고 핵심 건강 및 웰빙 사업에 자원을 집중하기 위한 것입니다. 경영진은 수익금이 자사주 매입 프로그램, 배당금 지급 또는 대체 자산 투자에 활용될 수 있다고 밝혔습니다.
Better Choice Company (NYSE : BTTR) a annoncé la vente réussie de la branche asiatique de sa filiale Halo à CZC Company pour un produit brut total de 8,1 millions de dollars. L'accord comprend un paiement initial en espèces de 6,5 millions de dollars (soit 3,34 dollars par action sur la base de 2 422 005 actions en circulation au 25 mars 2025) ainsi qu’un contrat de redevance sur 5 ans.
Le contrat de redevance garantit un paiement total minimum de 1,65 million de dollars, basé sur une redevance de 3 % sur les ventes pendant cinq ans, avec un paiement annuel minimum de 330 000 dollars. Halo, qui reste entièrement détenue par Better Choice, conservera ses opérations en Amérique du Nord et à l’échelle mondiale hors d’Asie.
Cette transaction vise à renforcer la situation financière de l’entreprise et à concentrer les ressources sur ses offres principales en santé et bien-être. La direction indique que les produits pourraient être utilisés pour des programmes de rachat d’actions, des dividendes ou des investissements dans des actifs alternatifs.
Better Choice Company (NYSE: BTTR) hat den erfolgreichen Verkauf des asiatischen Geschäftsbereichs seiner Tochtergesellschaft Halo an die CZC Company für insgesamt 8,1 Millionen US-Dollar Bruttoerlös bekanntgegeben. Der Deal umfasst 6,5 Millionen US-Dollar Barvorauszahlung (entsprechend 3,34 US-Dollar pro Aktie basierend auf 2.422.005 ausstehenden Aktien zum 25. März 2025) sowie eine 5-jährige Lizenzvereinbarung.
Die Lizenzvereinbarung garantiert eine mindestens Gesamtzahlung von 1,65 Millionen US-Dollar, basierend auf 3 % Lizenzgebühren auf den Umsatz über fünf Jahre, mit einer Mindestjahreszahlung von 330.000 US-Dollar. Halo, weiterhin vollständig im Besitz von Better Choice, behält seine nordamerikanischen und globalen Geschäftsbereiche außerhalb Asiens.
Die Transaktion zielt darauf ab, die Bilanz des Unternehmens zu stärken und Ressourcen auf das Kerngeschäft im Bereich Gesundheit und Wellness zu konzentrieren. Das Management gibt an, dass die Erlöse für Aktienrückkaufprogramme, Dividenden oder Investitionen in alternative Vermögenswerte verwendet werden könnten.
- Immediate cash injection of $6.5 million strengthens balance sheet
- Guaranteed minimum royalty income of $1.65 million over 5 years
- Strategic focus on core North American markets
- Potential shareholder returns through buybacks or dividends
- Loss of direct exposure to Asian market growth potential
- Reduced geographic diversification
Insights
This transaction represents an extremely positive development for Better Choice. The sale of Halo's Asian business for
The deal structure offers immediate liquidity while preserving future upside. The 5-year royalty agreement guarantees minimum payments of
This transaction fundamentally transforms Better Choice's financial position. The significant cash infusion provides flexibility to pursue shareholder value creation through potential share repurchases or dividends as mentioned by management. While the reference to potentially allocating reserves to precious metals is somewhat unconventional for an operating company, the overall financial impact remains overwhelmingly positive.
The strategic decision to monetize a non-core asset at a premium valuation while retaining North American operations demonstrates prudent capital allocation. This focused approach positions Better Choice to concentrate resources on its core health and wellness offerings while maintaining a stronger balance sheet.
Better Choice will retain ownership of its North American operations and rest-of-world ex-Asia operations
TAMPA, Fla., April 16, 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 that its wholly-owned subsidiary, Halo, Purely for Pets, Inc. (“Halo”), successfully completed the sale of its Asian business, to CZC Company LTD (the “Buyer”) for total gross proceeds of
Halo, which remains wholly-owned by Better Choice, will retain ownership of its key North American operations and global operations outside of Asia, allowing Halo to focus on its core markets and strategic initiatives.
This transaction allows the Company to concentrate on its core portfolio of health and wellness products, while creating an additional revenue stream through the royalty arrangement. This sale is a key step in the Company’s strategy to maximize shareholder value by optimizing its asset portfolio.
“We are pleased to have successfully completed this strategic transaction,” said Michael Young, Chairman of Better Choice. “We have strengthened our balance sheet and strategically focused our resources on our core health and wellness offerings while securing a steady revenue stream through the royalty structure. With improved financial flexibility we will look to maximize shareholder value in every possible way, which may include stock repurchase programs, further dividends or allocation of cash reserves into silver, gold and other currencies.”
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
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