Stryve Foods, Inc. Secures $4.1 Million in Funding to Support Growth
April 20 2023 - 5:30PM
Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ: SNAX), an
emerging healthy snack and eating platform disrupting traditional
consumer packaged goods (CPG) categories, and a leader in the
air-dried meat snack industry in the United States, announced
securing an additional $4.1 million in funding to support its
growth.
“We are pleased to secure additional financing
to fund our working capital needs, which will allow us to fuel our
growth as we deliver against our increasing demand,” commented
Chris Boever Chief Executive Officer. “With our strategic plan
progressing as expected, we see significant improvements in our
cost model across our business. Our productivity program is
unlocking operational improvements resulting in further cost
reductions and better margins. Customer response to our category
growth solution and new packaging has been exceptional. We are
pleased with our progress and committed to our long-term financial
goals.”
“We have secured approximately $4.1 million in
additional debt financing to support the business and allow us to
execute on our near-term ramp in quality distribution,” commented
Alex Hawkins Chief Financial Officer.
The $4.1 million in debt financing is in the
form of secured promissory notes subordinate to Stryve’s senior
lenders and was funded by a combination of various accredited
investors and Stryve insiders. The notes accrue interest annually
at a rate of 12%. Each Lender that purchased notes received a
warrant to purchase one share of the Company’s Class A common stock
for each $0.5134 of the principal amount of the Notes, for an
aggregate of 7,964,550 Warrants. Each Warrant is exercisable
immediately at an exercise price of $0.5134 and will expire three
years and three months from the date of issuance.
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 is a healthy snacking
and food company that manufactures, markets and sells highly
differentiated healthy snacking and food products that is planned
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 brand Two Tails, made with simple, all-natural ingredients and
100% real beef with no fillers, preservatives, or by-products.
Stryve distributes its products in major retail channels,
primarily in North America, including grocery, club stores and
other retail outlets, as well as directly to consumers through its
ecommerce websites and through the Amazon platform. For more
information about Stryve, visit www.stryve.com or follow us on
social media at @stryvebiltong.
* All Stryve air-dried 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
StatementsCertain 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 effect of the COVID-19 pandemic on Stryve; (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:Three Part Advisors,
LLCSandy Martin or Phillip
Kuppersmartin@threepa.com or pkupper@threepa.com214-616-2207
or 817-778-8339
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