JUPITER, Fla. – Safety Shot, Inc. (NASDAQ:SHOT), a dietary supplement company, has announced the divestiture of its wellness consumer products segment to Caring Brands, Inc., its subsidiary. The move, effective immediately, will see Caring Brands operating independently, with plans to go public through an initial public offering (IPO) within the next three months.
The separation allows Safety Shot to concentrate on the commercialization of its proprietary Safety Shot Dietary Supplement, which is marketed as the first patented product designed to reduce blood alcohol content by supporting alcohol metabolism. This strategic shift is intended to provide clarity for shareholders in assessing the performance of the distinct business strategies of both entities.
As part of the agreement, Safety Shot will receive three million shares of Caring Brands stock. In a value-creation effort for its shareholders, Safety Shot's Board plans to issue a dividend of two million of these shares to its shareholders.
Caring Brands, known for developing natural-based therapeutics for conditions such as hair growth and various skin disorders, will assume all responsibilities and costs associated with its wellness business post-separation.
Safety Shot has been expanding its market presence through business-to-business sales to distributors, retailers, restaurants, and bars throughout 2024. The Safety Shot Dietary Supplement is currently available for purchase online through the company’s website and Amazon (NASDAQ:AMZN).
This announcement includes forward-looking statements within the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Factors that could affect the company's ability to achieve its stated goals include product liability claims, compliance with laws and regulations, and the inherent risks associated with product development and commercialization.
The information contained in this article is based on a press release statement from Safety Shot, Inc.
In other recent news, Safety Shot, Inc. has reported significant developments. The company has secured a U.S. patent for a formula designed to rapidly reduce blood alcohol content, strengthening its market position. Safety Shot has also finalized several strategic agreements, including a Securities Purchase Agreement securing $500,000 in gross proceeds, and a consulting agreement with Core 4 Capital Corp.
Furthermore, Safety Shot has divested its wellness consumer products segment to Caring Brands, Inc., post which it will focus on the commercialization of the Safety Shot Dietary Supplement. The company has also partnered with Launchpad to target the college market, leveraging peer-to-peer marketing on over 100 major campuses.
Safety Shot has received substantial financial backing from President Jordan Schur through Core 4 Capital Corp., with a total investment of $9.4 million this year. The company has also expanded its product range and established partnerships with Atlantic Beverage Distributors, Prime CSB, and KeHE Distributors to enhance its product reach across the United States. Safety Shot has adopted a new equity incentive plan, approved by shareholders, reserving 15,000,000 shares of common stock for key personnel.
InvestingPro Insights
In the wake of Safety Shot, Inc.'s strategic move to divest its wellness consumer products segment, investors are closely monitoring the company's performance and potential. According to InvestingPro, Safety Shot holds more cash than debt on its balance sheet, which could provide the financial flexibility needed to focus on the commercialization of its Safety Shot Dietary Supplement. Moreover, analysts anticipate sales growth in the current year, suggesting optimism surrounding the company's market expansion efforts.
InvestingPro data sheds light on the company's current financial health, with a market capitalization of $60.65 million. Despite a challenging period reflected by a 24.66% drop in the stock price over the last week, the company's revenue growth has been impressive, with a 128.94% increase over the last twelve months as of Q2 2024. This growth is further highlighted by a quarterly revenue growth rate of 2947.59% in Q2 2024. However, it's worth noting that Safety Shot has been grappling with weak gross profit margins, with a gross profit margin of -203.58% in the same period.
For investors seeking a deeper analysis, InvestingPro offers additional insights, including 14 more InvestingPro Tips that could provide a more comprehensive understanding of Safety Shot's financial and market performance. These tips are available at https://www.investing.com/pro/SHOT, offering investors a valuable resource for making informed decisions.
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