Smart for Life Announces 1-for-3 Reverse Stock Split

Rhea-AI Summary

Smart for Life, Inc. (Nasdaq: SMFL) announced a 1-for-3 reverse stock split to maintain compliance with the minimum bid price requirement for its common stock on the NASDAQ Capital Market and attract more investors. The split is part of a larger strategic plan to support future acquisition financings and achieve $100 million in annualized revenues.

Positive

• Reverse stock split to maintain compliance and attract investors
• Strategic plan to support future acquisition financings
• Goal of achieving $100 million in annualized revenues

Negative

• None.

Company’s Stock Split Maintains Nasdaq Compliance as the Company Prepares for Next Generation of Its Acquisition Financings

MIAMI, Aug. 01, 2023 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a high growth global leader in the Health & Wellness sector marketing and manufacturing nutritional foods and supplements worldwide, announced that it will effect a 1-for-3 reverse stock split (“reverse split”) of its common stock, par value $0.0001 per share (“common stock”) and its authorized stock, that will become effective on August 2, 2023. Smart for Life’s common stock will continue to trade on The Nasdaq Capital Market (“Nasdaq”) under the symbol “SMFL” and will begin trading on a split-adjusted basis when the market opens on August 2, 2023. The new CUSIP number for the Common Stock following the reverse split will be 83204U400.

Among other considerations, the reverse split is intended to maintain the Company’s compliance with the minimum bid price requirement for maintaining the listing of its common stock on the NASDAQ Capital Market and to make the bid price more attractive to investors. In addition, the split is part of a larger strategic plan to support future acquisition financings, including multiple accretive acquisitions currently and prospectively in the Company’s pipeline.

“We have undergone a significant transformation of the Company, which we believe has set the stage for sustainable organic growth and positions us to execute on additional, highly accretive acquisitions,” stated Darren Minton, Smart for Life’s Chief Executive Officer. “Nevertheless, the overall capital markets remain challenging, and we believe this reverse split will allow us to maintain Nasdaq compliance, tighten the public float in our stock, and attract a broader universe of investors. Overall, we are highly encouraged by the outlook for the business and remain steadfast in achieving our near-term goal of $100 million in annualized revenues, as well as sustained profitability.”

About Smart for Life, Inc.

Smart for Life, Inc. (Nasdaq: SMFL) is engaged in the development, marketing, manufacturing, acquisition, operation and sale of a broad spectrum of nutritional and related products with an emphasis on health and wellness. Structured as a publicly held global holding company, the Company is executing a Buy-and-Build strategy with serial accretive acquisitions creating a vertically integrated company with an objective of aggregating companies generating a minimum of $300 million in revenues by the fourth quarter of 2026. To drive growth and earnings, Smart for Life is developing proprietary products as well as acquiring other profitable companies, encompassing brands, manufacturing and distribution channels. The Company currently operates five subsidiaries including Doctors Scientific Organica, Nexus Offers, Bonne Santé Natural Manufacturing, GSP Nutrition/Sports Illustrated Nutrition and Ceautamed Worldwide/Greens First. For more information about Smart for Life, please visit: www.smartforlifecorp.com.

Video regarding the Company’s manufacturing facility at Bonne Santé Natural Manufacturing is available at: www.bonnesantemanufacturing.com/video.

Investor material and a Fact Sheet with additional information about Smart for Life is available at: www.smartforlifecorp.com/investor-center.

Forward-Looking Statements

This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management’s beliefs, assumptions and expectations of Smart for Life’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Smart for Life does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. No assurances can be made that Smart for Life will successfully acquire its acquisition targets. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause Smart for Life’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the Securities and Exchange Commission.

Investor Relations Contact

Crescendo Communications, LLC
Tel: (212) 671-1021
SMFL@crescendo-ir.com