Better Choice Closes $ 17.8 Million Insider Funding

Better Choice Closes $ 17.8 Million Insider Funding

NEW YORK, October 02, 2020 (GLOBE NEWSWIRE) – Best Company of Choice (OTCQB: BTTR), an animal health and welfare company, today announced the $ 17.8 million Series F financing closed. As part of this funding, management and board members funded approximately $ 11 million.

“We are all very excited to reach this crucial point for Better Choice’s capital structure,” said Michael young, Chairman of the Board and a key investor in Series F financing.

“I have been actively investing in Better Choice for over two years, having seen it grow into the global multi-channel player it is today. Secular positive trends in the pet industry have never been stronger, and I believe Better Choice is extremely well positioned in e-commerce, DTC and Asia to take advantage of the market opportunity. “

The company expects to generate approximately $ 45 million in revenue in 2020, of which approximately $ 30 million of its sales are expected to be generated online, which includes the sale of products to e-commerce retailers such as Chewy and Amazon as well as direct to consumer sales. through the company’s online web platform. Direct-to-consumer sales are expected to represent around $ 13 million in sales, with strong recurring revenue. Industry-wide, online sales of pet products grew from 22% of sales in 2019 and is expected to exceed 30% of total sales in 2020.

International sales, which are sold through domestic distributors, have increased significantly and are expected to generate $ 10 million in 2020. The company expects further growth in 2021 of around 50% based on current quarterly figures in its main target markets, which include China, Korea and Japan.

The capital from the increase will be deployed to significantly reduce the Company’s outstanding term loan which is expected to reduce the Company’s monthly cash interest by approximately $ 110,000. The increased flexibility of the balance sheet will allow the Company to invest growth capital in its direct-to-consumer sales platform, to continue its international expansion, particularly in Asia, and to seek out potential mergers and acquisitions opportunities.

Young added, “Following the completion of our Series F financing, management, board and insiders will own more than 50% of the company on a fully diluted basis. Considering our current market capitalization relative to our peers, who trade up to 10x + revenue, versus BTTR at <2x, I am excited about the potential for significant upside as we continue our strong earnings growth. "

“Our companion animal business continues to outperform our internal forecasts and we are delighted to be well positioned in a rapidly changing macroeconomic environment,” said Werner von Pein, General manager. “The Covid-19 pandemic has accelerated the transition to online shopping in the pet industry. With approximately 65% ​​of our sales at Better Choice expected to be generated online, we have taken advantage of this rapidly changing momentum by building a repeat customer base. . In addition, we expect many positive results from our business in Asia, especially as we continue to increase our exports to China.

Pursuant to the financing, investors received units consisting of one convertible preferred share, Series F of the company, which are convertible into common shares of the company valued at $ 0.50 per common share, and ” a warrant for a period of six years, the number of common shares of the company into which a Series F preferred share is convertible at an exercise price of $ 0.75 per share (a premium of 50 % of the Initial Conversion Price of the Series F Preferred Shares).

For a more detailed description of the Offer and its related terms, please refer to Form 8-K filed by the Company on October 2, 2020.

About Better Choice Company

Better Choice Company Inc. is a growing animal health and welfare company committed to leading the industry’s shift towards pet products and services that help dogs and cats live better lives. healthier, happier and longer. We take an alternative, nutrition-based approach to animal health to conventional dog and cat food offerings and position our brand portfolio to benefit from the prevailing trends in the increasing humanization of animals and attention. of consumers on health and well-being. We have a proven track record of decades of successful selling trusted animal health and welfare products and we leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions. concerning the health of their animal. We sell most of our dog food, cat food and treats under the Halo and TruDog brands, which respectively focus on providing sustainably sourced kibble and canned foods derived from real whole meat, as well as food and treats. for raw little processed dogs. For more information, please visit

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