Better Choice Company issues letter to shareholders on SRx Health acquisition

Better Choice Company (BTTR) Chairman Issues Letter to Shareholders as Company Continues to Make Progress Towards the Closing of its SRx Health Acquisition Combined company will emerge as a leading global health and wellness company by providing better products and solutions for pets, people, and families Combined 2025 revenue and EBITDA expected to be approximately +$270 million, and +$10 million, respectively1 Better Choice net tangible book value is $4.07 per share2 and net current asset value per share is $3.943 Transaction is expected to close in late Q4 2024 or early Q1 2025 Better Choice Company issued a letter to shareholders as the company continues to make progress towards the closing of its acquisition of SRx Health Solutions, a provider of healthcare solutions, in an all-stock transaction for approximately $125M. The letter states that: “…The combination of the two companies is expected to generate significant cash flow, yield operational efficiencies, and cost savings, while providing large growth opportunities that will drive sustainable organic growth for each respective business. We expect the transaction to close in late Q4 of this year or early Q1 of 2025…Better Choice has established its premium pet food brand Halo through our omni-channel distribution model. Gross sales of the brand totaled approximately $49M in 2023…For Q2 2024, Better Choice generated close to break-even adjusted EBITDA of less than ($0.03M)…SRx Health generated approximately C$180M in revenue and generated positive adjusted EBITDA in 2023…The combined companies for the trailing twelve months have generated $235M in revenue, increasing approximately 25% quarter-over-quarter. From an operational perspective, we expect to achieve immediate cost savings estimated to be approximately $1.7M annually, with potential for further upside as we continue to integrate the two companies…On a pro forma basis, we project 2025 combined revenue and EBITDA to be over $270M and over $10M, respectively…From a valuation perspective, net tangible book value is $4.072 per share and net current asset value per share is $3.943, both well below the current price of our equity.”