Stryve Foods shareholders approve warrant amendments

PLANO, TX – Stryve Foods, Inc. (NASDAQ:SNAX), a Delaware-incorporated company specializing in food and kindred products manufacturing with a current market capitalization of $2.8 million, announced today the results of its Special Meeting of Stockholders, which took place on January 31, 2025.

According to InvestingPro analysis, the company’s stock, currently trading at $0.75, appears undervalued despite facing significant financial challenges, including a concerning debt burden. The meeting addressed key proposals concerning the issuance of shares and amendments to existing warrants.

The first proposal, which sought approval for the issuance of Class A common stock upon the exercise of the November Warrants, received overwhelming support from stockholders, with 2,184,710 votes for, 331,411 against, and 15,137 abstentions.

The second proposal regarding the issuance of Class A common stock upon the exercise of the Amended Warrants also passed with a majority of votes: 2,201,601 for, 311,520 against, and 18,137 abstentions. These developments come as the company faces financial headwinds, with InvestingPro data showing a negative EBITDA of $9.88 million in the last twelve months and a concerning current ratio of 0.38.

These approvals allow Stryve Foods to proceed with the issuance of shares as stipulated by the exercise of the November Warrants and the Amended Warrants. The company’s definitive proxy statement, filed on November 29, 2024, provided detailed information on each matter submitted to a vote at the Special Meeting.

The SEC filing also included a Cover Page Interactive Data File as part of the financial statements and exhibits, which is embedded within the Inline XBRL document.

This recent development follows the company’s continuous efforts to align its financial strategies with shareholder interests and market opportunities. Stryve Foods, previously known as Andina Acquisition Corp (NYSE:TGLS). III, operates out of its principal executive offices in Frisco, Texas. For a deeper understanding of Stryve Foods’ financial position and future prospects, InvestingPro subscribers can access comprehensive analysis including 13 additional ProTips and detailed financial metrics in the Pro Research Report.

The information regarding the Special Meeting and the results of the votes are based on the press release statement filed with the SEC.

In other recent news, Stryve Foods has been making significant strides despite facing potential delisting from the Nasdaq Stock Market due to falling below the required minimum share price.

The company has been granted an extension until January 31, 2025, to comply with Nasdaq’s minimum stockholders’ equity requirement. This development follows Stryve Foods’ adjournment of a special stockholders’ meeting to vote on two critical proposals, which has been postponed to January 31, 2025, to allow more time for stockholders to vote.

Despite these challenges, Stryve Foods has reported a 36.4% increase in net sales in their Q3 earnings call, reaching $5.7 million. The company also improved gross margins from 13.3% to 21.7% year-over-year. Operating expenses were reduced by 15.9% to $3.5 million due to disciplined cost management, and the adjusted EBITDA loss decreased to $1.7 million from $2.5 million in the previous year.

Amid these positive developments, Stryve Foods also managed to raise $2.9 million in equity to build inventory in response to strong demand. However, the company acknowledged the need for additional capital to fully support its expansion plans.

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