JUPITER, FL - Safety Shot, Inc. (NASDAQ:SHOT), a wellness and dietary supplement company, has announced a private placement investment of $3.4 million by President Jordan Schur through Core 4 Capital Corp., his family investment group. This investment follows a series of funding initiatives by Core 4, totaling $9.4 million this year, with previous contributions of $5 million in April and $1 million in June.
The recent transaction involved the issuance of 3,370,787 shares at $0.89 each, along with 3,370,767 warrants at $0.125 per warrant. Schur, who joined the company six months ago, expressed confidence in the company's trajectory, citing progress and the results of a clinical trial by the Center for Applied Health Sciences. The study reportedly demonstrates the efficacy of Safety Shot's flagship product in reducing blood alcohol content and alleviating hangover symptoms.
Safety Shot plans to allocate the net proceeds from the offering towards working capital, general corporate purposes, and further development and growth of the Safety Shot brand. The product, which claims to be the first patented wellness item that supports alcohol metabolism, is currently available online and through business-to-business channels.
The company's expansion strategy includes introducing Safety Shot to distributors, retailers, restaurants, and bars throughout 2024. Safety Shot's press release also contained forward-looking statements regarding the product's development and commercialization, which are subject to risks and uncertainties inherent in the dietary supplement market.
The details of the investment are disclosed in the company's Current Report on Form 8-K, filed on September 4, 2024. This report comes amid Safety Shot's efforts to establish a foothold in the wellness and dietary supplement industry. The information for this article is based on a press release statement.
In other recent news, Safety Shot, Inc. has made significant strides in both product development and business expansion. The company's clinical study showed that its rapid alcohol reducer can substantially increase aldehyde dehydrogenase levels, which can lead to a decrease in acetaldehyde, associated with hangover symptoms. The product has been observed to decrease blood alcohol content (BAC) and rapidly reduce acetaldehyde levels in the blood.
Safety Shot has also expanded its product range, which includes a 12oz drink, a 4oz shot, and a dry powder stick pack, all featuring the patented formula. The company recently secured partnerships with Atlantic Beverage Distributors, Prime CSB, and KeHE Distributors, enhancing its product reach across the United States.
In terms of financial developments, Safety Shot raised $5 million from Core 4 Capital Corp through a private placement, issuing 2,369,668 shares at a price of $2.11 each. Furthermore, the company has adopted a new equity incentive plan, approved by shareholders, which reserves 15,000,000 shares of common stock for key personnel.
However, Safety Shot ended its partnership with professional boxer Ryan Garcia due to a breach of the company's zero-tolerance policy towards discrimination and hate speech. These are recent developments for Safety Shot, Inc.
InvestingPro Insights
As Safety Shot, Inc. (NASDAQ:SHOT) continues to navigate the wellness and dietary supplement market, recent data from InvestingPro offers insights into the company's financial health and market performance. With a market capitalization of $46.29 million, Safety Shot is positioned as a small-cap company with room for growth, particularly as it leverages new capital infusions for brand development.
One of the key InvestingPro Tips for Safety Shot is that analysts anticipate sales growth in the current year, which aligns with the company's strategy to expand its distribution network and enhance its product offerings. This is substantiated by an impressive revenue growth of 128.94% over the last twelve months as of Q2 2024. Additionally, the company holds more cash than debt on its balance sheet, signaling a strong liquidity position that could support its operational and strategic initiatives.
InvestingPro Data metrics reveal that Safety Shot has experienced a significant 2947.59% quarterly revenue growth as of Q2 2024, an indicator of the company's increasing sales and market traction. However, it's important to note that the company is not profitable over the last twelve months, with gross profit margins at -203.58%, reflecting the costs associated with ramping up its business.
Despite this, the stock has seen a strong return over the last month, with a 19.75% increase in price total return, indicating a potential rebound or positive investor sentiment in the short term. Investors considering SHOT should be aware that the stock is trading at a high revenue valuation multiple and that the company's valuation implies a poor free cash flow yield, as per InvestingPro Tips. These factors may influence the long-term investment outlook for the stock.
For those interested in a deeper dive into Safety Shot's financials and market potential, InvestingPro offers additional tips on the company's performance and prospects. Visit https://www.investing.com/pro/SHOT to explore all 14 InvestingPro Tips available for Safety Shot, Inc.
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