Better Choice Company Signs Non-Binding Term Sheet to Sell Halo Asia for $6.5 Million in Cash at Closing and a 5-Year Royalty Valued at a Minimum of $1.65 Milli

Better Choice Company, Inc. (NYSE American: BTTR) (“Better Choice” or the “Company”), a pet health and wellness company, is pleased to announce it has signed a non-binding term sheet with its existing partner in Asia, CZC Company LTD (the “Buyer”), to sell its Halo business in Asia for $6.5 million in cash at closing, along with a 3% royalty on sales over the next five years, guaranteed by a minimum royalty payment of $330,000 per year or $1.65 million in total.
Pursuant to the terms of the transaction, Better Choice will retain ownership of its significant North American and rest-of-world operations.
While the definitive agreement has not yet been finalized, the Buyer has paid a $500,000 non-refundable deposit to Better Choice, marking a key milestone in the transaction. Additionally, the parties have exchanged the first draft of the definitive agreement, and legal teams on both sides are working diligently to finalize the terms to close the sale in Q1 2025.
“We continue to strategically explore creating shareholder value and are pleased with the progress of this transaction,” said Michael Young, Chairman of Better Choice. “This sale will further strengthen our balance sheet and allow us to further concentrate on growing our North American and global operations. The deposit and agreement draft demonstrate the Buyer’s commitment to close on the transaction in a timely manner. We look forward to keeping shareholders informed as we continue to execute on our strategic plans, including updates on our previously announced transaction with SRx Health Solutions Inc. and future growth initiatives.”
About Better Choice Company Inc.
Better Choice Company Inc. is a rapidly growing pet health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier, and longer lives. We take an alternative, nutrition-based approach to pet health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted pet health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell the majority of our dog food, cat food and treats under the Halo brand, which is focused, respectively, on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food and treats. For more information, please visit https://www.betterchoicecompany.com.