In a challenging market environment, Better Choice Company Inc. (BTTR) shares hit a new 52-week low, falling to $1.6. This significant drop reflects a broader trend of investor caution, as the company’s performance over the past year has seen a dramatic decline, with 1-year exchange data showing a sharp drop of -84.76%. The pet health and wellness company, which has strived to innovate within its sector, faces a critical period ahead as it seeks to regain investor confidence and reverse the downward trajectory of its share value.
In other recent news, Better Choice Company is set to finalize its acquisition of SRx Health Solutions Inc., a healthcare solutions provider. The all-stock transaction, valued at approximately $125 million, is expected to close between late 2024 and early 2025. This strategic move is expected to position Better Choice as a global health and wellness brand, with expected revenue of more than 270 million dollars and more. $10 million in EBITDA by 2025.
At the same time, Better Choice is expanding into the veterinary medicine sector with its new company, Better Pet Rx, set to launch in 2025. The move complements the company’s existing Halo brand of premium pet food products. Details of the SRx Health acquisition and subsequent plans for Better Pet Rx will be further discussed in the upcoming shareholder update call.
Additionally, Better Choice has established a special committee to explore potential mergers and acquisitions, asset monetization opportunities and joint ventures. The committee, led by Michael Young, was formed following a litigation settlement that ended Alphia Inc.’s right of first refusal.
Additionally, Better Choice recently completed an additional stock sale, accruing approximately $5.3 million in gross proceeds. Finally, the company moved from BDO USA, PC to Marcum LLP as its certified accountant for the fiscal year ending December 31, 2024. These are among the recent developments at Better Choice Company.
InvestingPro Insights
Better Choice Company Inc. (BTTR) continues to face significant headwinds, as reflected by its stock performance and recent financial metrics. According to data from InvestingPro, the company’s market capitalization has dropped to just $3.13 million, underscoring the severity of its current situation. The stock’s price-to-book ratio sits at a low of 0.3, indicating that the market values the company at less than a third of its book value.
InvestingPro Tips highlights that BTTR is trading near its 52-week low and has seen a significant price drop over the last year, corroborating the article’s mention of the stock hitting a new 52-week low. Furthermore, the company’s revenue growth has been negative, declining -20.49% in the trailing twelve months to Q3 2024, suggesting continued challenges to its market position.
Despite these difficulties, it’s worth noting that BTTR has more cash than debt on its balance sheet, which could give it some financial flexibility as it navigates this turbulent period. For investors looking for a more comprehensive analysis, InvestingPro offers 16 additional tips for Better Choice Company, providing a deeper understanding of the company’s financial health and market position.
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