PLANO, TX—Stryve Foods, Inc. (NASDAQ:SNAX), a company specializing in food and kindred products, announced fresh employment agreements with top executives and the departure of a board director. The new contracts for Christopher Boever, CEO, and R. Alex Hawkins (NASDAQ:HWKN), CFO, were finalized on Thursday, replacing their previous agreements.
Boever's new deal as CEO includes an annual base salary of $450,000, with eligibility for a bonus equal to 100% of his base salary. He is also entitled to four weeks of vacation and may participate in the company's Omnibus Incentive Plan. If terminated without "cause" or for "good reason," he could receive up to 24 months' base salary and bonus if the termination follows a change of control within the company.
Hawkins's agreement as CFO mirrors the structure of Boever's, with an initial base salary of $275,000 and similar bonus, vacation, and severance terms. Both agreements carry customary restrictive covenants and define "cause" for termination and "good reason" for resignation in line with the company's policies.
Concurrent with these new agreements, Stryve Foods canceled previously awarded performance shares to both executives under the Plan, replacing them with an equal number of time-vesting restricted stock.
In board news, Gregory S. Christenson resigned as a director and Chairman of the Audit Committee, effective September 30, 2024. His departure is not due to any disagreement on the company's operations or accounting practices. Stryve Foods has expressed gratitude for Christenson's service.
In other recent news, Stryve Foods reported significant financial strides in its second quarter of fiscal year 2024 earnings call. The company saw a notable increase in gross margin to 27.4%, a decrease in operating expenses, and a slight 3% rise in net sales to $6.2 million.
Despite a net loss of $3 million, the improvement in adjusted EBITDA and gross profit indicates a robust turnaround from the negative figures reported in the same quarter of the previous year.
Stryve Foods is setting its sights on growth opportunities, particularly in the air-dried pet treat market. In addition to this, the company plans to strengthen its digital footprint with a website redesign in the fourth quarter of 2024. The company provided a net sales forecast for fiscal year 2024, expecting to achieve between $23 million and $26 million.
The company's recent developments also include securing Kosher and Halal certifications to expand its market reach. However, it is important to note that Stryve Foods is facing working capital constraints due to high product demand.
Despite these challenges, the company remains optimistic about reaching profitability goals and expects growth in the upcoming quarters.
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