Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ: SNAX), an
emerging healthy snack and eating platform disrupting traditional
consumer packaged goods (CPG) categories, and a leader in the
air-dried meat snack industry in the United States, has closed on
previously announced credit facilities totaling up to $26 million
in committed borrowing capacity.
Chris Boever, Chief Executive Officer,
commented, “Today, we are pleased to announce the closing
of the financing we discussed on our last earnings call. We are
laser-focused on the Company’s Restructuring Plan, and these new
facilities provide liquidity and a bridge to support our plans at
Stryve to deliver quality revenue growth, improve costs through
productivity, and build a culture of execution. These initiatives
are the key tenants for value creation, as we evolve from a
founder-led to an operating company at Stryve
Foods.”
“While we had many options for high-cost capital
and dilutive financing, the financing structure we put in place was
purposefully tailored to meet the needs of the business and all
stakeholders. Accordingly, we are extremely pleased with the
outcome as this combination of facilities is both non-dilutive and
highly flexible to accommodate the next growth phase of the
company," said Alex Hawkins, Chief Financial
Officer.
The financing structure consists of two
facilities, a term loan with flexible amortization based on
revenues and an asset backed facility based on accounts receivable
and inventory. The asset backed facility provides $15 million in
committed borrowing capacity, with an accordion feature up to $20
million, at an interest rate calculated at Prime plus 2.25% on
borrowed amounts. The revenue-based term loan provides $6 million
committed and $4 million funded at closing with monthly
amortization starting at 2.75% of net sales.
Hawkins continued, “These
facilities provide us with the near-term liquidity to execute on
our plans, also providing us the working capital support needed to
deliver the foundational improvements to position us for the
future. Further, the revenue-based nature of the term loan is an
ideal solution for an early-stage business like ours as the
debt-service is highly flexible, automatically adjusting up or down
to accommodate our future performance.”
About Stryve Foods, Inc.
Stryve is an emerging healthy snacking and food
company that manufactures, markets and sells highly differentiated
healthy snacking and food products that Stryve believes can disrupt
traditional snacking and CPG categories. Stryve’s mission is “to
help Americans eat better and live happier, better lives.” Stryve
offers convenient products that are lower in sugar and
carbohydrates and higher in protein than other snacks and foods.
Stryve’s current product portfolio consists primarily of air-dried
meat snack products marketed under the Stryve®, Kalahari®,
Braaitime®, and Vacadillos® brand names. Unlike beef jerky,
Stryve’s all-natural air-dried meat snack products are made of beef
and spices, are never cooked, contain zero grams of sugar*, and are
free of monosodium glutamate (MSG), gluten, nitrates, nitrites, and
preservatives. As a result, Stryve’s products are Keto and Paleo
diet friendly. Further, based on protein density and sugar content,
Stryve believes that its air-dried meat snack products are some of
the healthiest shelf-stable snacks available today.
Stryve distributes its products in major retail
channels, primarily in North America, including grocery, club
stores and other retail outlets, as well as directly to consumers
through its ecommerce websites and through the Amazon platform.
For more information about Stryve, visit
www.stryve.com or follow us on social media at @stryvebiltong.
* All Stryve Biltong and Vacadillos products
contain zero grams of added sugar, with the exception of the
Chipotle Honey flavor of Vacadillos, which contains one gram of
sugar per serving.
Cautionary Note Regarding
Forward-Looking StatementsCertain statements made herein
are “forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of
words such as “anticipate”, “may”, “will”, “would”, “could”,
“intend”, “aim”, “believe”, “anticipate”, “continue”, “target”,
“milestone”, “expect”, “estimate”, “plan”, “outlook”, “objective”,
“guidance” and “project” and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters, including, but not limited to, statements
regarding Stryve’s plans, strategies, objectives, targets and
expected financial performance. These forward-looking statements
reflect Stryve’s current views and analysis of information
currently available. This information is, where applicable, based
on estimates, assumptions and analysis that Stryve believes, as of
the date hereof, provide a reasonable basis for the information and
statements contained herein. These forward-looking statements
involve various known and unknown risks, uncertainties and other
factors, many of which are outside the control of Stryve and its
officers, employees, agents and associates. These risks,
uncertainties, assumptions and other important factors, which could
cause actual results to differ materially from those described in
these forward-looking statements, include: (i) the inability to
achieve profitability due to commodity prices, inflation, supply
chain interruption, transportation costs and/or labor shortages;
(ii) the ability to recognize the anticipated benefits of the
Business Combination or meet financial and strategic goals, which
may be affected by, among other things, competition, supply chain
interruptions, the ability to pursue a growth strategy and manage
growth profitability, maintain relationships with customers,
suppliers and retailers and retain its management and key
employees; (iii) the risk that retailers will choose to limit or
decrease the number of retail locations in which Stryve’s products
are carried or will choose not to carry or not to continue to carry
Stryve’s products; (iv) the possibility that Stryve may be
adversely affected by other economic, business, and/or competitive
factors; (v) the effect of the COVID-19 pandemic on Stryve; (vi)
the possibility that Stryve may not achieve its financial outlook
and (vii) other risks and uncertainties described in the Company’s
public filings with the SEC. Actual results, performance or
achievements may differ materially, and potentially adversely, from
any projections and forward-looking statements and the assumptions
on which those projections and forward-looking statements are
based.
Investor Relations Contact:Three Part Advisors,
LLCSandy Martin or Phillip
Kuppersmartin@threepa.com or pkupper@threepa.com214-616-2207
or 817-778-8339
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