Stryve Foods, Inc. Transforms Balance Sheet Issuing $9.4 Million of Preferred Stock to Retire Debt
Stryve Foods (NASDAQ: SNAX) has completed a significant balance sheet transformation by issuing 877,878 shares of Series A-1 Convertible Preferred Stock, valued at $10.71 per share, totaling $9.4 million. This transaction, closed on January 30th, 2025, retires $8.7 million of maturing liabilities.
Notable insider participation includes approximately $3.0 million in preferred stock purchases, with CEO Chris Boever contributing $2.7 million. The preferred stock features include: conversion into Class A common stock at $0.7599 per share after six months, 12% annual dividends payable in cash or additional preferred stock, and voting rights on a one-to-one basis with Class A common stock (subject to 19.99% cap).
The Company maintains a call option after two years and can force conversion if it raises $6.0 million from common stock sales within nine months at or above $0.7599 per share.
Stryve Foods (NASDAQ: SNAX) ha completato una significativa trasformazione del proprio bilancio emettendo 877.878 azioni di Azioni Preferenziali Convertibili di Serie A-1, valutate a 10,71 dollari per azione, per un totale di 9,4 milioni di dollari. Questa transazione, chiusa il 30 gennaio 2025, estingue 8,7 milioni di dollari di passività in scadenza.
Una partecipazione degna di nota da parte degli insider comprende circa 3,0 milioni di dollari in acquisti di azioni preferenziali, con il CEO Chris Boever che contribuisce con 2,7 milioni di dollari. Le caratteristiche delle azioni preferenziali includono: conversione in azioni ordinarie di Classe A a 0,7599 dollari per azione dopo sei mesi, dividendi annuali del 12% pagabili in contante o in ulteriori azioni preferenziali, e diritti di voto su base uno a uno con le azioni ordinarie di Classe A (soggetti a un limite del 19,99%).
La Società mantiene un'opzione di acquisto dopo due anni e può forzare la conversione se raccoglie 6,0 milioni di dollari da vendite di azioni ordinarie entro nove mesi a un prezzo uguale o superiore a 0,7599 dollari per azione.
Stryve Foods (NASDAQ: SNAX) ha completado una transformación importante de su balance al emitir 877,878 acciones de Acciones Preferentes Convertibles de Clase A-1, valoradas en 10,71 dólares por acción, totalizando 9,4 millones de dólares. Esta transacción, cerrada el 30 de enero de 2025, elimina 8,7 millones de dólares de pasivos que vencen.
La participación notable de los insiders incluye aproximadamente 3,0 millones de dólares en compras de acciones preferentes, con el CEO Chris Boever contribuyendo con 2,7 millones de dólares. Las características de las acciones preferentes incluyen: conversión en acciones ordinarias de Clase A a 0,7599 dólares por acción después de seis meses, dividendos anuales del 12% pagaderos en efectivo o en acciones preferentes adicionales, y derechos de voto en una base uno a uno con las acciones ordinarias de Clase A (sujeto a un límite del 19,99%).
La Compañía mantiene una opción de compra después de dos años y puede forzar la conversión si recauda 6,0 millones de dólares de ventas de acciones ordinarias dentro de los nueve meses a un precio igual o superior a 0,7599 dólares por acción.
Stryve Foods (NASDAQ: SNAX)는 877,878주 분량의 A-1계 변환 우선주를 발행하여 1억 70.71 달러의 가치로 940만 달러를 조달하며 실질적인 대차대조표 변화를 완료하였습니다. 이 거래는 2025년 1월 30일에 종료되며, 만기가 도래하는 870만 달러의 부채를 소멸시킵니다.
주요 내부자 참여는 약 300만 달러의 우선주 구매를 포함하며, CEO인 Chris Boever는 270만 달러를 기여하였습니다. 우선주의 특징에는 다음이 포함됩니다: 6개월 후 주당 0.7599달러에 A주 보통주로 전환 가능, 현금 또는 추가 우선주 형태로 연 12% 배당금 지급, A주 보통주와의 1:1 비율의 의결권(19.99% 상한선 적용)이 있습니다.
회사는 2년 후 콜 옵션을 유지하며, 9개월 이내에 0.7599달러 이상으로 보통주 매각에서 600만 달러를 모금할 경우 전환을 강제할 수 있습니다.
Stryve Foods (NASDAQ: SNAX) a complété une transformation significative de son bilan en émettant 877.878 actions d'Actions Privilégiées Convertibles de Série A-1, évaluées à 10,71 dollars par action, totalisant 9,4 millions de dollars. Cette transaction, clôturée le 30 janvier 2025, permet de résorber 8,7 millions de dollars de passifs arrivant à échéance.
Une participation notable des initiés comprend environ 3,0 millions de dollars d'achats d'actions privilégiées, le PDG Chris Boever contribuant à hauteur de 2,7 millions de dollars. Les caractéristiques des actions privilégiées comprennent : conversion en actions ordinaires de Classe A à 0,7599 dollars par action après six mois, dividendes annuels de 12 % payables en espèces ou sous forme d'actions privilégiées supplémentaires, et droits de vote sur une base un à un avec les actions ordinaires de Classe A (sous réserve d'un plafond de 19,99 %).
La Société maintient une option d'achat après deux ans et peut forcer la conversion si elle lève 6,0 millions de dollars provenant de ventes d'actions ordinaires dans un délai de neuf mois à un prix égal ou supérieur à 0,7599 dollars par action.
Stryve Foods (NASDAQ: SNAX) hat eine bedeutende Transformation der Bilanz abgeschlossen, indem 877.878 Aktien der Serie A-1 wandelbaren Vorzugsaktien ausgegeben wurden, die mit 10,71 US-Dollar pro Aktie bewertet sind, was insgesamt 9,4 Millionen US-Dollar ergibt. Diese Transaktion, die am 30. Januar 2025 abgeschlossen wurde, tilgt 8,7 Millionen US-Dollar an fälligen Verbindlichkeiten.
Eine nennenswerte Insider-Beteiligung umfasst etwa 3,0 Millionen US-Dollar an Käufen von Vorzugsaktien, wobei CEO Chris Boever 2,7 Millionen US-Dollar beigesteuert hat. Die Merkmale der Vorzugsaktien umfassen: Umwandlung in Stammaktien der Klasse A zu 0,7599 US-Dollar pro Aktie nach sechs Monaten, jährliche Dividenden von 12%, die in bar oder in zusätzlichen Vorzugsaktien gezahlt werden, sowie Stimmrechte im Verhältnis eins zu eins mit den Stammaktien der Klasse A (mit einem Limit von 19,99%).
Das Unternehmen behält eine Kaufoption nach zwei Jahren und kann die Umwandlung erzwingen, wenn es innerhalb von neun Monaten 6,0 Millionen US-Dollar aus dem Verkauf von Stammaktien zu einem Preis von 0,7599 US-Dollar oder mehr erhebt.
- Elimination of $8.7 million in maturing debt obligations
- Strong insider participation with $3.0 million investment, including $2.7 million from CEO
- Preferred stock priced at premium to market at $10.71 per share
- Company maintains flexibility with call option and forced conversion rights
- 12% annual dividend requirement on preferred stock
- Potential dilution of approximately 12.4 million common shares upon conversion
- Additional dividend payments required, either in cash or additional preferred stock
Insights
This strategic debt-to-equity conversion marks a pivotal transformation for Stryve Foods, addressing critical balance sheet concerns while signaling strong insider confidence. The $9.4 million preferred stock issuance at a premium to market (
The transaction's structure reveals several strategic advantages:
- The 12% dividend rate, payable in cash or additional preferred stock, offers flexibility in cash management during the company's path to profitability
- The 6-month conversion lockup provides a buffer period for operational improvements before potential dilution
- The forced conversion clause tied to a
$6.0 million equity raise creates an incentive for positive market development - The company's two-year call option at 102% of stated value provides strategic flexibility for future capital structure optimization
Particularly noteworthy is the substantial
The conversion price of
Eliminates
Deleverages Assets & Strengthens Balance Sheet
Creates Flexibility to Pursue More Attractive Financing Options
PLANO, Texas, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Stryve Foods, Inc. (NASDAQ: SNAX) (“Stryve” or the “Company”), a leader in high-protein, better-for-you snacking, today announced the successful completion of a balance sheet transforming transaction, marking the second step in a multi-pronged approach to fortify its financial foundation and support its path to profitability.
As part of this initiative, Stryve has issued 877,878 shares of newly created Series A-1 Convertible Preferred Stock, valued at approximately
Strong Insider Participation Reflects Confidence in Stryve’s Future:
Demonstrating a high level of confidence in Stryve’s future, insiders represent approximately
“This transaction represents a major milestone in our efforts to transform the Company and position Stryve for long-term success,” said Mr. Boever. “By eliminating the near-term maturities, we seek to make it easier for investors to value the Company on the basis of the business instead of its capital structure – hopefully allowing the market to acknowledge the overall transformation in operating results we’ve completed over the last two years. This transaction represents an important step forward in our multi-phased approach to transform the business, enhance our financial stability, and drive sustainable growth.”
Key Terms of the Series A-1 Convertible Preferred Stock:
- Conversion: Beginning six months after issuance, the preferred equity is convertible into Class A common stock at a conversion price of
$0.75 99 per share. On an as-converted basis and before contemplating any preferred dividends, this represents approximately 12.4 million shares of common stock in total. - Dividends: Preferred shares accrue dividends at
12% per annum, payable in cash or additional preferred stock, at the Company’s discretion. - Voting Rights: Each share of preferred stock will vote on a one-to-one basis with the Class A common stock, subject to a
19.99% voting cap. - Company’s Call Option: Beginning two years after issuance, the Company has the right to redeem the preferred stock at
102% of the stated value, plus any unpaid accrued dividends. - Forced Conversion: If, within nine months of issuance of the preferred stock, the Company raises at least
$6.0 million in gross proceeds from the sale of Class A common stock at a price equal to or greater than the preferred stock’s conversion price ($0.75 99 per share), Stryve may, at its option, force the conversion of the preferred stock into common shares at the conversion price.
“We believe that this transaction is a win-win for Stryve and our stakeholders,” added R. Alex Hawkins, Chief Financial Officer of Stryve Foods. “We have effectively addressed upcoming debt maturities while preserving our ability to raise additional capital in a way that supports our long-term growth objectives. The strong insider participation further underscores our leadership team’s confidence in Stryve’s vision and the steps we are taking to execute on our profitability goals.”
This transaction builds on Stryve’s ongoing financial transformation efforts, following previous initiatives aimed at streamlining operations and improving cost efficiencies. With a strengthened balance sheet and a focus on operational execution, the Company remains committed to driving value for shareholders and accelerating its journey to profitability.
About Stryve Foods, Inc.
Stryve is a premium air-dried meat snack company that is conquering the intersection of high protein, great taste, and health under the brands of Braaitime®, Kalahari®, Stryve®, and Vacadillos®. Stryve sells highly differentiated healthy snacking and food products in order to disrupt traditional snacking and CPG categories. Stryve’s mission is “to help Americans eat better and live happier, better lives.” Stryve offers convenient products that are lower in sugar and carbohydrates and higher in protein than other snacks and foods. Stryve’s current product portfolio consists primarily of air-dried meat snack products marketed under the Stryve®, Kalahari®, Braaitime®, and Vacadillos® brand names. Unlike beef jerky, Stryve’s all-natural air-dried meat snack products are made of beef and spices, are never cooked, contain zero grams of sugar*, and are free of monosodium glutamate (MSG), gluten, nitrates, nitrites, and preservatives. As a result, Stryve’s products are Keto and Paleo diet friendly. Further, based on protein density and sugar content, Stryve believes that its air-dried meat snack products are some of the healthiest shelf-stable snacks available today. Stryve also markets and sells human-grade pet treats under the brands Two Tails and Primal Paws, made with simple, all-natural ingredients and
Stryve distributes its products in major retail channels, primarily in North America, including grocery, convenience store, mass merchants, and other retail outlets, as well as directly to consumers through its ecommerce websites and through the Amazon and Wal*mart platforms. For more information about Stryve, visit www.stryve.com or follow us on social media at @stryvebiltong.
* All Stryve Biltong and Vacadillos products contain zero grams of added sugar, with the exception of the Chipotle Honey flavor of Vacadillos, which contains one gram of sugar per serving.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “may”, “will”, “would”, “could”, “intend”, “aim”, “believe”, “anticipate”, “continue”, “target”, “milestone”, “expect”, “estimate”, “plan”, “outlook”, “objective”, “guidance” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, including, but not limited to, statements regarding Stryve’s plans, strategies, objectives, targets and expected financial performance. These forward-looking statements reflect Stryve’s current views and analysis of information currently available. This information is, where applicable, based on estimates, assumptions and analysis that Stryve believes, as of the date hereof, provide a reasonable basis for the information and statements contained herein. These forward-looking statements involve various known and unknown risks, uncertainties and other factors, many of which are outside the control of Stryve and its officers, employees, agents and associates. These risks, uncertainties, assumptions and other important factors, which could cause actual results to differ materially from those described in these forward-looking statements, include: (i) the inability to achieve profitability due to commodity prices, inflation, supply chain interruption, transportation costs and/or labor shortages; (ii) the ability to meet financial and strategic goals, which may be affected by, among other things, competition, supply chain interruptions, the ability to pursue a growth strategy and manage growth profitability, maintain relationships with customers, suppliers and retailers and retain its management and key employees; (iii) the risk that retailers will choose to limit or decrease the number of retail locations in which Stryve’s products are carried or will choose not to carry or not to continue to carry Stryve’s products; (iv) the possibility that Stryve may be adversely affected by other economic, business, and/or competitive factors; (v) the ability to remain listed on NASDAQ; (vi) the possibility that Stryve may not achieve its financial outlook; (vii) risks around the Company’s ability to continue as a going concern and (viii) other risks and uncertainties described in the Company’s public filings with the SEC. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those projections and forward-looking statements are based.
Investor Relations Contact:
Investor Relations
ir@stryve.com
FAQ
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