SNAX News & Events

Stryve Foods has engaged in a formal review process to evaluate potential strategic alternatives aimed at maximizing shareholder value while securing capital to support its accelerating growth in demand. Over the last two years, Stryve has made significant progress in transforming its operations and driving demand for its differentiated product offerings. Through this transformation, the company has improved its business performance, reduced its losses considerably. Chris Boever, CEO, stated "We participate in a highly attractive category, at the intersection of the rising consumer behaviors in snacking and growing demand for protein and convenience. We enjoy a portfolio with highly differentiated consumer benefits and unmatched manufacturing capabilities. As previously shared, the brand repositioning has proven successful, and we are experiencing significant increases in retailer and consumer demand. We are pleased with our progress as it validates the strategic plan that we communicated in early 2023. However, as we have previously shared, the accelerating demand for our products continues to outpace our ability to supply due to liquidity. It is imperative that we secure the working capital necessary for us to meet customer needs and to put us in position to achieve our near-term profitability plan." To address these constraints and position the business for sustainable growth, Stryve has been actively engaged in efforts to secure additional capital. These efforts are ongoing and remain a top priority for the Company's management team and Board of Directors. In parallel with these capital raising efforts, the Company has initiated a comprehensive review of strategic alternatives as a means to secure the capital it needs. Potential outcomes of this process may include, but are not limited to, a strategic investment, a business combination, a sale of the Company or its assets, or other potential transactions. The Company has not set a timetable for the conclusion of this process and does not intend to comment further unless and until the Board of Directors has approved a specific course of action or otherwise determines that further disclosure is appropriate or required by law.

Stryve Foods announced the completion of a major network optimization initiative. By transitioning fulfillment operations to a combination of redistribution partners, including Dot Foods, distributors, and third-party logistics providers, Stryve has exited its final distribution center lease-an achievement expected to generate over $1M in annual savings and drive significant operational efficiencies. This transition delivers substantial financial and operational benefits to Stryve, including: + $1M in expected annual net savings, achieved through improved operating efficiencies, reduced transportation costs, and rent savings.; Eliminating + $10M in future lease obligations, freeing up capital for strategic investments and growth. Enhanced service levels for retail partners, leading to improved product availability and expanded distribution reach. As previously announced, Stryve's partnership with Dot Foods has played a pivotal role in strengthening its supply chain. By leveraging Dot's expertise, the Company is now better positioned to support growing consumer demand while streamlining its operations. With the lease termination effective February 15, 2025, and the Dot Foods relationship already fully operational, Stryve expects to begin realizing savings from this network optimization in its Q1 2025 results. This initiative represents another critical step in the Company's journey toward long-term profitability and shareholder value creation.

Stryve Foods announced the completion of a balance sheet transforming transaction. As part of this initiative, Stryve has issued 877,878 shares of newly created Series A-1 Convertible Preferred Stock, valued at approximately $10.71 per share, for a total of $9.4M in preferred stock. The transaction closed on Thursday, January 30th, 2025, and was priced at a premium to market. As part of this transaction, approximately $8.7M of maturing liabilities have been retired in exchange for the Series A-1 Convertible Preferred Stock. This strategic transaction eliminates a substantial portion of the Company's outstanding debt obligations, significantly improving its financial flexibility and capital structure. Insiders represent approximately $3M of the preferred stock, with Chris Boever, CEO, personally representing $2.7M.

Reports Q revenue $5.7M, consensus $6.26M.Chris Boever, Chief Executive Officer, commented, "In Q3 2024, Stryve Foods continued to build momentum as we executed our transformation with discipline and focus. Our achievements in expanding distribution and driving margin improvements demonstrate the power of our strategy and our team's commitment. We're excited about our progress as we strengthen Stryve's position in the healthy protein snacking category. The initiatives we've implemented provide a strong foundation for sustainable growth and profitability in the quarters to come."