Safety Shot, Inc. (NASDAQ:SHOT), a company specializing in perfumes, cosmetics, and other toilet preparations, announced the approval of a new equity incentive plan following its annual shareholder meeting. The plan, which was initially approved by the company's board on January 17, 2024, was ratified by shareholders on Monday, with the aim to incentivize and retain key employees and directors.
The 2024 Equity Incentive Plan allows for the reservation of 15,000,000 shares of common stock. The details of the plan were included in Safety Shot's proxy statement filed on June 24, 2024. The approved plan is seen as a strategic move to align the interests of the company's employees and directors with those of the shareholders.
In addition to the equity plan, shareholders elected six directors to serve until the next annual meeting or until their successors are elected. The election resulted in David Long, John Gulyas, Jordan Schur, Richard Pascucci, Christopher Marc Melton, and Jarret Boon securing their director positions for another term.
Furthermore, the company's stockholders ratified the appointment of M&K CPAS, PLLC as the independent registered public accounting firm for the fiscal year ending December 31, 2024. This decision was made with a significant majority of the votes in favor.
The shareholders also approved an amendment to Safety Shot's Second Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock. This move could potentially facilitate future financing or corporate actions that require the issuance of additional shares.
Safety Shot, Inc., previously known as Jupiter Wellness, Inc. and CBD Brands, Inc., has undergone significant changes since its name change in June 2020. The company, based in Jupiter, Florida, is incorporated in Delaware and operates under the name 08 Industrial Applications and Services.
In other recent news, Safety Shot, Inc. has revealed a series of strategic partnerships and developments. The wellness and dietary supplement company has teamed up with Atlantic Beverage Distributors, expanding the distribution of its products to Massachusetts and Rhode Island. This move aligns with Safety Shot's growth objectives in the Northeast, following a recent partnership with Prime CSB for distribution in New York and New Jersey.
The company's expansion efforts also include a significant partnership with Capital Drugs, a pharmacy chain with 300 locations nationwide, marking a substantial increase in its retail presence. Safety Shot has also announced the introduction of its formula in a new 4-ounce bottle format, designed for on-the-go use, expected to hit the shelves in Q3.
In terms of financial developments, Safety Shot successfully raised $5 million in funding from Core 4 Capital Corp through a private placement, issuing 2,369,668 shares at a price of $2.11 each. The funds are set to support the development of its flagship product, a beverage aimed at rapid alcohol detoxification.
Moreover, Safety Shot has partnered with the Nelk Boys, a prominent entertainment group, to serve as brand ambassadors, aiming to boost product awareness. These are recent developments in Safety Shot's expansion and product development efforts.
InvestingPro Insights
In light of Safety Shot, Inc.'s recent shareholder meeting and the approval of their new equity incentive plan, it's insightful to consider the company's financial health and market performance. According to InvestingPro data, Safety Shot holds a market capitalization of approximately $39.34 million. Notably, the company has experienced a significant revenue growth of 159.8% over the last twelve months as of Q1 2024, highlighting its potential for expansion in the perfumes and cosmetics industry.
However, the company's gross profit margins paint a different picture, with a concerning figure of -678.6%, indicating that the cost of goods sold significantly exceeds the revenue generated. This is a critical aspect for investors to monitor, especially when considering the company's strategy to incentivize employees through stock compensation, which could dilute current shareholders' value if not managed properly. Additionally, the stock has seen a considerable decline, with a one-week total return of -31.73% and a one-month total return of -39.44%, suggesting a period of volatility and market skepticism.
InvestingPro Tips further reveal that Safety Shot is currently trading in oversold territory according to the Relative Strength Index (RSI), which could indicate a potential rebound or at least a pause in the downward trend. Moreover, the company's liquid assets exceed its short-term obligations, providing some financial stability in the near term. For investors seeking a deeper analysis, there are more than 15 additional InvestingPro Tips available, offering insights that could help in making a more informed investment decision regarding Safety Shot, Inc.
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