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SCOTTSDALE/LUTZ - Safety Shot, Inc. (Nasdaq:SHOT), a micro-cap company with a market value of $27.63 million, has completed its acquisition of plant-based energy beverage company Yerbae Brands Corp. (TSX-V:YERB.U; OTCQX:YERBF) through a court-approved plan of arrangement, according to a press release statement issued Friday. According to InvestingPro data, Safety Shot’s stock has declined over 70% in the past year, highlighting the challenging market conditions facing the company.
Under the terms of the transaction, Safety Shot acquired all issued and outstanding Yerbae shares, with Yerbae shareholders receiving 0.2918 Safety Shot shares for each Yerbae share held. The deal resulted in the issuance of approximately 19,881,948 Safety Shot shares to former Yerbae shareholders.
Following the completion of the transaction, Safety Shot shareholders now own approximately 81.64% of the combined company, while former Yerbae shareholders hold approximately 18.36%.
The acquisition was executed through a plan of arrangement under the Business Corporations Act of British Columbia, as outlined in the arrangement agreement dated January 7, 2025.
Yerbae shares will be delisted from the TSX Venture Exchange and OTCQX effective June 30, 2025. Shareholders holding physical share certificates must submit a Letter of Transmittal to Safety Shot’s transfer agent to receive their Safety Shot shares, while those holding shares in book-entry form or brokerage accounts will have their shares exchanged automatically.
Safety Shot, a wellness and dietary supplement company, has developed Sure Shot, a product designed to lower blood alcohol content. The company currently generates revenue of $0.57 million and operates with negative gross margins of 37%. Yerbae produces plant-based energy beverages featuring yerba mate that are zero calorie, zero sugar, and free from GMOs. InvestingPro analysis reveals 15+ additional insights about Safety Shot’s financial health and market position, available exclusively to subscribers.
Maxim Group LLC served as the exclusive financial advisor to Safety Shot for the merger, with Cozen O’Connor LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. serving as legal counsel to Yerbae and Safety Shot, respectively. With a weak financial health score of 0.9 out of 5 according to InvestingPro, investors seeking detailed analysis can access the comprehensive Pro Research Report, which provides expert insights on the company’s financial position and growth prospects.
In other recent news, Safety Shot, Inc. announced that its acquisition of YerbaÉ Brands Corp. has been postponed to next week, following stockholder approval. This delay is attributed to scheduling adjustments after a holiday week, with Maxim Group LLC advising on the transaction. Additionally, shareholders at a special meeting approved an expansion of the company’s 2024 Equity Incentive Plan, adding 22 million more shares for stock-based compensation. The meeting also endorsed several key proposals, including the issuance of Safety Shot shares to YerbaÉ shareholders and the potential execution of a reverse stock split.
Furthermore, Safety Shot is venturing into the cognitive enhancement and sleep aid markets, initiating research and development for new products. The company aims to develop nootropics and sleep solutions, leveraging its expertise in science-backed wellness products. In another development, Safety Shot has finalized a debt settlement agreement with Silverback Capital Corporation, allowing it to settle debts through the issuance of freely trading securities. This agreement was disclosed in a recent 10-Q filing and received court approval in May.
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