Better Choice Company sells Halo’s business in Asia for $8.1M

Better Choice Company (BTTR) announced that its wholly-owned subsidiary, Halo, Purely for Pets, completed the sale of its Asian business, to CZC Company for total gross proceeds of $8.1M including $6.5M, or $3.34 per share based on 2,422,005 shares outstanding as of March 25, in cash, along with a 5-year royalty agreement. This guarantees a minimum total royalty payment of $1.65M, based on a 3% royalty on sales over the next five years, with a minimum annual payment of $330,000. Halo, which remains wholly-owned by Better Choice, will retain ownership of its key North American operations and global operations outside of Asia, allowing Halo to focus on its core markets and strategic initiatives. This transaction allows the Company to concentrate on its core portfolio of health and wellness products, while creating an additional revenue stream through the royalty arrangement. This sale is a key step in the Company’s strategy to maximize shareholder value by optimizing its asset portfolio.