Smart for Life Announces 1-for-7 Reverse Stock Split

Rhea-AI Summary

Smart for Life, Inc. (Nasdaq: SMFL) announced a 1-for-7 reverse stock split of its common stock to maintain compliance with Nasdaq's minimum bid price requirement and attract investors. The split will be effective on April 22, 2024, with the common stock continuing to trade under the symbol 'SMFL'. The move is part of a strategic plan to support future acquisition financings.

MIAMI, April 18, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a leader in the Health & Wellness sector marketing and manufacturing nutritional foods and supplements worldwide, announced that it will effect a 1-for-7 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 April 22, 2024. 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 April 22, 2024. The new CUSIP number for the Common Stock following the reverse split will be 83204U608.

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 Nasdaq 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.

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 & Wellness. Structured as a publicly held holding company, the Company is executing a Buy-and-Build strategy with serial accretive acquisitions creating a vertically integrated company. 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 recently concluded the execution of a restructuring plan including recapitalization of the Company with equity and debt financings, the sale of certain non-performing assets, the sale and leaseback of the Company’s 18,000 sq. ft. Doral manufacturing facility and the successful liquidation of the Company’s senior debt facility. In addition, the Company converted substantial debt obligations to equity materially improving the Company’s balance sheet. The Company has signed a definitive agreement for the acquisition of Purely Optimal Nutrition, which is expected to add additional revenue and EBITDA. For more information about Smart for Life, please visit: www.smartforlifecorp.com.

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

 

FAQ

What did Smart for Life announce?

Smart for Life announced a 1-for-7 reverse stock split of its common stock.

When will the reverse stock split be effective?

The reverse stock split will be effective on April 22, 2024.

Under what symbol will Smart for Life's common stock continue to trade?

Smart for Life's common stock will continue to trade under the symbol 'SMFL' on The Nasdaq Capital Market.

Why is the reverse split being implemented?

The reverse split is being implemented to maintain compliance with the minimum bid price requirement for listing on Nasdaq and to make the bid price more attractive to investors.

What is the purpose of the reverse split in relation to future acquisition financings?

The reverse 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.