The Simply Good Foods Company Announces Exercise of Private Warrants by Conyers Park

Rhea-AI Summary

The Simply Good Foods Company (NASDAQ:SMPL) announced the cashless exercise of 6.7 million private placement warrants by Conyers Park Acquisition Corp., resulting in the issuance of 4,830,761 shares. This increases Conyers Park's total holdings from 8,936,017 to 13,766,778 shares, raising the total outstanding shares of Simply Good Foods to 100,963,850. The Chairman, James M. Kilts, emphasized the company's solid business model and growth potential, particularly with their strong brands, Atkins® and Quest®.

Positive

• Conyers Park's warrant exercise increased their ownership stake, signaling confidence in Simply Good Foods.
• The company is positioned for organic growth and potential M&A opportunities in the nutrition market.

Negative

• None.

DENVER, Jan. 10, 2022 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (NASDAQ:SMPL) (“Simply Good Foods” or the “Company”), a developer, marketer and seller of branded nutritional foods and snacking products, today announced that Conyers Park Acquisition Corp. (“Conyers Park”), exercised their 6.7 million private placement warrants that were set to expire in July 2022 to acquire shares of the Company’s common stock.

In accordance with the Warrant Agreement, Conyers Park elected to exercise the warrants on a cashless basis. Accordingly, by virtue of the cashless exercise of the private warrants, Conyers Park’s net receipt of shares related to the transaction was 4,830,761 and resulted in an increase of their total shares beneficially owned from 8,936,017 to 13,766,778. After this issuance, the Company’s issued and outstanding share count will be 100,963,850 shares, which does not include shares related to employee stock options and non-vested stock that was the equivalent of about 2 million shares at the end of the fiscal first quarter ended November 27, 2021.

“Simply Good Foods has many attributes that make it a great company and compelling investment, particularly, two great brands – Atkins® and Quest® - with a unique consumer proposition, a solid business model, relevance with key retailers, and many exciting growth opportunities,” said James M. Kilts, Chairman of the Board of Directors of The Simply Good Foods Company and Co-Chief Executive Officer of Conyers Park Acquisition Corp. “The business is stronger today than when it began trading in July of 2017 and we believe that the company is well positioned to continue to drive organic growth and participate in M&A to further increase stockholder value.”

About The Simply Good Foods Company

The Simply Good Foods Company (NASDAQ: SMPL), headquartered in Denver, Colorado, is a consumer packaged food and beverage company that aims to lead the nutritious snacking movement with trusted brands that offer a variety of convenient, innovative, great-tasting, better-for-you snacks and meal replacements. The product portfolio we develop, market and sell consists primarily of protein bars, ready-to-drink (“RTD”) shakes, sweet and salty snacks and confectionery products marketed under the Atkins®, Atkins Endulge®, and Quest® brand names. Simply Good Foods is poised to expand its wellness platform through innovation and organic growth along with acquisition opportunities in the nutritional snacking space. For more information, please refer to http://www.thesimplygoodfoodscompany.com.

Investor Contact
Mark Pogharian
Vice President, Investor Relations, Treasury and Business Development
The Simply Good Foods Company
(720) 768-2681
mpogharian@simplygoodfoodsco.com

 

FAQ

What is the significance of Conyers Park's warrant exercise for SMPL?

The cashless exercise of 6.7 million warrants by Conyers Park Acquisition Corp. increases their stake in Simply Good Foods, indicating strong confidence in the company's future.

How many total shares are outstanding after the recent warrant exercise by Conyers Park?

After the exercise, the total outstanding shares for Simply Good Foods will be 100,963,850.

What brands does The Simply Good Foods Company own?

Simply Good Foods owns well-known brands such as Atkins® and Quest®, focusing on nutritious snack products.

What growth opportunities does Simply Good Foods see in the market?

Simply Good Foods is looking to drive organic growth and explore M&A opportunities to enhance shareholder value.

When did Conyers Park acquire its initial stake in Simply Good Foods?

Conyers Park began trading in July 2017, and has since increased its ownership stake through the exercise of warrants.