Safety Shot, Inc. (NASDAQ:SHOT), a company specializing in personal care products, has entered into several strategic agreements and completed a divestiture, as per its latest 8-K filing with the SEC.
On Monday, September 20, 2024, Safety Shot entered into a Securities Purchase Agreement with an accredited investor, securing $500,000 in gross proceeds through the sale of 448,029 shares at $1.12 each, a 10% discount from the closing price on the same day.
Additionally, on Sunday, September 23, 2024, the company finalized a consulting agreement with Core 4 Capital Corp., which is set to commence on October 1, 2024. Over a six-month period, Core 4 Capital will provide advisory services to Safety Shot. As compensation, Safety Shot will issue 1,250,000 restricted shares to the consultant. These shares will vest in two equal installments: half on December 31, 2024, and the remainder on March 31, 2025. Notably, Jordan Schur, Safety Shot's President, holds a 15% ownership in Core 4 Capital, with additional shares held by his immediate family members.
Today, Safety Shot disclosed the completion of a Separation and Exchange Agreement with Caring Brands, Inc., in both Nevada and Florida, along with Brian S. John as the representative of the shareholders. This agreement resulted in Safety Shot transferring its wellness consumer products segment, along with associated assets, intellectual property, and liabilities, to Caring Brands, Inc. of Nevada. This divestiture follows the discontinuation of the company's operations in this segment and the write-off of its assets. Post-divestiture, Safety Shot will focus on the commercialization of the Safety Shot Dietary Supplement.
In other recent news, Safety Shot, Inc. has made significant strides in product development and business expansion. The wellness company has secured a patent for a formula that rapidly reduces blood alcohol content, further solidifying its market position. Additionally, Safety Shot has partnered with Launchpad to target the college market, leveraging peer-to-peer marketing and ambassador-led activities on over 100 major campuses.
Safety Shot's President, Jordan Schur, has backed the company with a $3.4 million investment through Core 4 Capital Corp., part of a series of funding initiatives totaling $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.
In terms of internal operations, Safety Shot has adopted a new equity incentive plan, approved by shareholders, which reserves 15,000,000 shares of common stock for key personnel.
InvestingPro Insights
As Safety Shot, Inc. (NASDAQ:SHOT) maneuvers through strategic agreements and a significant divestiture to focus on its core products, investors may find it valuable to consider the current financial health and market performance of the company. According to InvestingPro data, Safety Shot holds a market capitalization of $67.85 million, with a notable revenue growth in the last twelve months as of Q2 2024, surging by 128.94%. This suggests a potential upside in the company's sales trajectory. However, it's important to note that the company has a negative gross profit margin of -203.58%, indicating that it spends more on the cost of goods sold than it earns in revenue, which is a concerning sign.
InvestingPro Tips for Safety Shot highlight that the company holds more cash than debt on its balance sheet, which can be a sign of financial stability. Additionally, analysts anticipate sales growth in the current year, which may be an encouraging signal for future performance. On the other hand, the company is quickly burning through cash and has been experiencing high price volatility, as evidenced by a one-week price total return of -14.18% and a six-month price total return of -51.79%. These factors suggest that while there may be growth potential, there are also significant risks associated with the stock.
For those interested in a deeper analysis, there are additional InvestingPro Tips available on the platform, which could provide further insights into Safety Shot's financials and market position. Investors can explore these tips to make more informed decisions regarding their investments in Safety Shot.
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