Safety Shot, Inc. Strikes Amended Settlement with Bigger Capital

Safety Shot, Inc. (NASDAQ:SHOT), a Delaware-incorporated firm specializing in personal care products with a market capitalization of $30.6 million, has entered into an amended settlement agreement with Bigger Capital LLC, as detailed in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company faces significant financial challenges, with a negative EBITDA of -$41.63 million in the last twelve months. The amendment, effective January 20, 2025, modifies the terms of a previous settlement related to a legal dispute.

Under the terms of the amended agreement dated April 1, 2025, Safety Shot commits to paying Bigger Capital 10% of the gross proceeds from any capital raised before June 30, 2025. This arrangement is designed to prevent Bigger Capital from converting a $3.5 million convertible note before July 21, 2025. The funds from the capital raise will be used to pay down the company’s obligations under a separate $1.75 million secured convertible note maturing on December 31, 2026. InvestingPro analysis reveals that Safety Shot’s current ratio stands at 0.27, indicating potential liquidity challenges, with short-term obligations exceeding liquid assets.

Additionally, if Safety Shot completes a capital raise by April 18, 2025, Bigger Capital has agreed to extend the deadline for the effectiveness of a registration statement from April 5, 2025, to May 2, 2025. The amendment also stipulates that if Safety Shot issues shares at a price lower than the current exercise price of Bigger Capital’s warrants, the exercise price will be adjusted downward accordingly.

The agreement underscores Safety Shot’s commitment to resolving its financial obligations and managing its capital structure. The company is required to pay Bigger Capital within two business days of receiving any proceeds from its financing efforts. These proceeds will be allocated first to accrued unpaid interest and then to outstanding principal.

The financial details of the agreement and its implications for Safety Shot’s financial strategy are outlined in the Exhibit 10.1 of the 8-K filing. This report serves as a factual summary of the agreement based on the press release statement, providing investors with key insights into Safety Shot’s ongoing financial management. InvestingPro data shows the stock has declined by 81.64% over the past year, with revenue at $0.7 million in the last twelve months. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which provides detailed analysis of Safety Shot’s financial health and growth prospects among 1,400+ US equities.

In other recent news, Safety Shot, Inc. has reported several significant developments. The company announced that its Sure Shot product, designed to reduce the effects of alcohol, sold out quickly on Amazon (NASDAQ:AMZN) and through its own e-commerce channel, highlighting strong consumer demand. A clinical trial published in the Journal of Nutrition and Dietary Supplements confirmed that Safety Shot significantly lowers blood alcohol concentration and hangover symptoms. Additionally, Safety Shot is expanding its reach by entering grocery and convenience stores through partnerships with major retailers like Walmart (NYSE:WMT).com and 7-11.

Safety Shot is also in the process of acquiring Yerbae, a plant-based energy drink company, with completion expected by mid-2025, pending shareholder approval. In financial news, the company secured a $1.29 million investment through a private equity deal, selling 3.5 million shares at $0.368 each, and an earlier $1 million investment through a similar agreement. The spin-off of its subsidiary, Caring Brands, is set for a record date of April 7, 2025, with shares expected to begin trading on Nasdaq shortly thereafter.

These developments come as Safety Shot continues to innovate with new product formats and flavors while securing a new patent to protect its offerings. The company plans to shift its marketing strategy towards more grassroots and partnership-based initiatives in the coming year.

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