Better Choice Company Signs Non-Binding Term Sheet to Sell Halo Asia for $6.5 Million in Cash at Closing and a 5-Year Royalty Valued at a Minimum of $1.65 Million
Upon closing, Better Choice will retain ownership of North American and rest-of-world ex Asia operations
Buyer has paid a $500,000 non-refundable deposit to purchase the assets in Asia
TAMPA, Fla., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (NYSE American: BTTR) (“Better Choice” or the “Company”), a pet health and wellness company, is pleased to announce it has signed a non-binding term sheet with its existing partner in Asia, CZC Company LTD (the “Buyer”), to sell its Halo business in Asia for $6.5 million in cash at closing, along with a 3% royalty on sales over the next five years, guaranteed by a minimum royalty payment of $330,000 per year or $1.65 million in total.
Pursuant to the terms of the transaction, Better Choice will retain ownership of its significant North American and rest-of-world operations.
While the definitive agreement has not yet been finalized, the Buyer has paid a $500,000 non-refundable deposit to Better Choice, marking a key milestone in the transaction. Additionally, the parties have exchanged the first draft of the definitive agreement, and legal teams on both sides are working diligently to finalize the terms to close the sale in Q1 2025.
“We continue to strategically explore creating shareholder value and are pleased with the progress of this transaction,” said Michael Young, Chairman of Better Choice. “This sale will further strengthen our balance sheet and allow us to further concentrate on growing our North American and global operations. The deposit and agreement draft demonstrate the Buyer’s commitment to close on the transaction in a timely manner. We look forward to keeping shareholders informed as we continue to execute on our strategic plans, including updates on our previously announced transaction with SRx Health Solutions Inc. and future growth initiatives.”
About Better Choice Company Inc.
Better Choice Company Inc. is a rapidly growing pet health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier, and longer lives. We take an alternative, nutrition-based approach to pet health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted pet health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell the majority of our dog food, cat food and treats under the Halo brand, which is focused, respectively, on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food and treats. For more information, please visit https://www.betterchoicecompany.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.
Company Contact:
Better Choice Company, Inc.
Kent Cunningham, CEO
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
Released January 28, 2025