Safety Shot, Inc. secures $250,000 in private investment

Safety Shot, Inc. (NASDAQ:SHOT), a company specialized in perfumes, cosmetics, and other toilet preparations, has entered into a Securities Purchase Agreement with an accredited investor, securing a private investment of $250,000. This agreement, effective as of Monday, involves the sale of 651,042 shares at a price of $0.3840 per share, a 20% discount from the common stock’s closing price on January 22, 2025.

According to InvestingPro data, the company’s stock has experienced significant volatility, with a -83.65% return over the past year and currently trades near its 52-week low of $0.45.

The transaction was based on a private placement, which is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is a means of raising capital that is often used by companies looking to expand, which could be the case with Safety Shot, Inc. The shares were sold without registration under the Securities Act of 1933, in reliance upon the exemption provided by Section 4(a)(2) and Rule 506(b) of Regulation D.

The private investment comes at a time when Safety Shot, Inc., formerly known as Jupiter Wellness, Inc., and before that, CBD Brands, Inc., continues to evolve its business strategies. The company’s executive offices are located in Jupiter, Florida, and it is incorporated in Delaware.

InvestingPro analysis reveals the company maintains a healthy current ratio of 1.9, though it faces challenges with weak gross profit margins and rapid cash burn. Subscribers can access 15 additional ProTips and comprehensive financial metrics to better understand the company’s position.

The details of the Securities Purchase Agreement were disclosed in an 8-K filing with the SEC, dated January 31, 2025. The company has not publicly disclosed any specific plans for the use of the proceeds from the sale of the shares. However, such capital injections are typically used for general corporate purposes, including funding ongoing operations and facilitating business growth. With analysts forecasting revenue growth of 189% for FY2024 and a current market capitalization of $29.34 million, the company appears positioned for potential expansion despite its current challenges.

Safety Shot, Inc.’s common stock and warrants are listed on The Nasdaq Capital Market under the symbols SHOT and SHOTW, respectively. The warrants are exercisable for one share of common stock at $8.50 per share.

This financial move indicates Safety Shot, Inc.’s ongoing efforts to strengthen its financial position and potentially fund its growth initiatives. The information provided in this article is based on a press release statement.

In other recent news, Safety Shot, Inc. has secured $1M through a private equity sale, selling over 2 million shares to an accredited investor. This private investment in public equity (PIPE) deal is part of the company’s efforts to bolster its financial position amid challenges with cash burn rates. Analysts from InvestingPro project significant revenue growth of 189% for the current fiscal year.

However, the company faces potential delisting from the Nasdaq Stock Exchange due to non-compliance with the minimum bid price requirement. Safety Shot, Inc. has until July 1, 2025, to regain compliance. Despite this challenge, the company has seen substantial financial backing from President Jordan Schur through Core 4 Capital Corp., totaling $9.4 million this year.

Additionally, the company, now rebranded as Sure Shot, has expanded its retail presence with the launch of its Sure Shot beverage in over 300 locations of a leading Midwestern grocery chain and over 450 stores across metro Chicago and southern Wisconsin.

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