Better Choice Announces Strategic Investment from Alphia of $5 Million, Establishes Multi-Year Manufacturing Partnership
The investment will restructure company debt, supporting sustainable, long-term business growth
NEW YORK, June 22, 2023 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (NYSE: BTTR) (“Better Choice” or “the Company”), a pet health and wellness company, today announced that Alphia, Inc. (“Alphia”), a leading custom manufacturer of super-premium pet food in the U.S., has invested $5 million into the Company, establishing a direct manufacturing relationship and stabilizing business outlook. The investment will also eliminate the debt held by Better Choice’s subsidiary brand Halo, Purely for Pets, Inc., with Old Plank Trail Community Bank, N.A., an affiliate of Wintrust Bank, N.A. (“Wintrust Credit Facility”) and will offer improved liquidity and minimal financial covenants.
“We look forward to working with Alphia, leveraging their investment and deep knowledge of the pet food manufacturing marketplace,” said Michael Young, chairman of Better Choice. “Alphia and Better Choice’s multi-year manufacturing partnership will positively impact our brand, Halo and the millions of people who choose our products for their pets.”
The Company will enter into an asset-based lending agreement with Wintrust Receivables Finance, a separate division of Wintrust Bank, N.A. These improved debt conditions, coupled with a promising cash flow management plan will support the Company's path to profitability.
“Better Choice shares our values and mission to create high-quality, nutritional dog food and treats for family’s pets. This investment brings us closer to a strong brand that shares our values for the highest product quality and food safety,” commented Dave McLain, chief executive officer for Alphia. “We are ready to help propel growth for both companies.”
Better Choice’s subsidiary brand, Halo, has been committed to providing pets with natural, high-quality foods for over 30 years. The brand offers a range of cat and dog food products made with responsibly sourced ingredients without any artificial colors, flavors, or preservatives. For more information, visit www.halopets.com.
About Better Choice Company, Inc.
Better Choice Company Inc. is a pet health and wellness company focused on providing pet products and services that help dogs and cats live healthier, happier, and longer lives. We offer a broad portfolio of pet health and wellness products for dogs and cats sold under our Halo brand across multiple forms, including foods, treats, toppers, dental products, chews, and supplements. We have a demonstrated, multi-decade track record of success and are well positioned to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. Our products consist of kibble and canned dog and cat food, freeze-dried raw dog food, and treats, vegan dog food and treats, oral care products and supplements. Halo’s core products are made with high-quality, thoughtfully sourced ingredients for natural, science-based nutrition. Each innovative recipe is formulated with leading veterinary and nutrition experts to deliver optimal health. For more information, please visit https://www.betterchoicecompany.com.
Alphia® is the leading custom manufacturer of super-premium pet food in the U.S., manufacturing more than one billion pounds of dry pet food and treats annually. Customers choose Alphia as their trusted partner for offering unparalleled marketplace intelligence, providing research and development expertise, and delivering the safest, highest quality products on shelf. Alphia’s decades of leadership remains focused on safety, quality and consistently delivering growth for its customers, its employees, and their communities. Alphia has six manufacturing facilities nationwide and is also the parent company of LANI, a world-class ingredient milling solutions provider, and Veracity, a logistics company providing warehousing, transportation, and distribution services. Combined, Alphia offers its partners complete farm-to-bowl custom solutions. For more information, visit www.alphia.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Better Choice Company, Inc.
Kent Cunningham, Chief Executive Officer
KCSA Strategic Communications
Valter Pinto, Managing Director
Released June 22, 2023