FitLife Brands, Inc. - FTLF STOCK NEWS

FitLife Brands, Inc. successfully closes acquisition of MusclePharm Corporation, acquiring assets and assuming no liabilities. Total consideration for the acquisition was $18.5 million cash.

FitLife Brands, Inc. has acquired the assets of MusclePharm Corporation under Section 363 of the US Bankruptcy Code. The all-cash transaction is expected to be highly accretive to existing shareholders. The purchase price is $18.5 million, funded by cash on hand and a new committed $10 million term loan. FitLife intends to return the brand to growth through online sales direct to consumers and expanded wholesale distribution. The brand has a strong international following. FitLife expects MusclePharm to drive continued revenue and earnings growth.

FitLife Brands, Inc. has received approval to list its common stock on the Nasdaq Capital Market, with trading expected to commence on September 18, 2023. Shareholders are not required to take any action as a result of the listing.

FitLife Brands reported a 3.2% increase in total revenue for 2022, reaching $28.8 million, despite a significant decline in fourth-quarter wholesale revenue by 39.1%.Online sales surged 23.2%, contributing 28% of total revenue. Gross profit fell 3.8% to $12.0 million, while net income declined 18.1% to $4.4 million, primarily due to non-recurring items. The company ended the year with no debt and $13.3 million in cash and has initiated a share repurchase program. Following its acquisition of Mimi's Rock, FitLife anticipates operational cost reductions and revenue growth in 2023, with projected revenue between $10.4 million and $11.0 million for Q1.

FitLife Brands has successfully completed the acquisition of Mimi’s Rock Corp., effectively doubling its size while avoiding shareholder dilution. The acquisition, finalized on February 28, 2023, was executed through a statutory plan of arrangement, with funding sourced from cash reserves and a new $12.5 million term loan. CEO Dayton Judd expressed optimism regarding the integration of Mimi’s Rock’s team and brands to enhance growth and profitability. FitLife markets over 130 dietary supplements across various retail channels, focusing on health and wellness.

FitLife Brands announced the acquisition of Mimi’s Rock Corp, approved by over 99.9% of shareholders at a special meeting. This transformative acquisition will double FitLife's size with minimal leverage and no dilution to shareholders. The acquisition will proceed under a plan of arrangement in accordance with the Ontario Business Corporations Act. Closing is anticipated by February 28, 2023, pending regulatory approvals. This strategic move is aimed at expanding FitLife's market presence and enhancing its product offerings in the growing nutritional supplements sector.