Better Choice Company Divests Halo Asia Operations in $8.1 Million Strategic Sale

• Better Choice Company has secured an $8.1 million deal to sell its Halo pet food business in Asia to CZC Company LTD, including $6.5 million in cash and guaranteed royalty payments.
• The transaction maintains Better Choice's ownership of North American and rest-of-world operations while establishing a 3% royalty stream on Asian sales for the next five years.
• The strategic divestment, expected to close in April 2025, includes a guaranteed minimum royalty of $330,000 annually, totaling $1.65 million over the five-year period.

Better Choice Company (NYSE American: BTTR) has announced a strategic move to sell its Halo pet food operations in Asia to existing partner CZC Company LTD in a deal valued at $8.1 million. The transaction represents a significant development in the company's global business strategy while maintaining its strong presence in other key markets.

Transaction Details and Financial Structure

The agreement comprises multiple revenue streams, with $6.5 million to be paid in cash at closing. Additionally, Better Choice will receive a 3% royalty on sales for the next five years, backed by a minimum guaranteed royalty payment of $330,000 annually, ensuring at least $1.65 million in royalty revenues over the period.

Strategic Market Position

Better Choice will retain full ownership and control of its North American operations and rest-of-world business outside Asia, allowing the company to focus on its core markets while maintaining financial benefits from the Asian market through the royalty arrangement. The deal is structured to provide both immediate capital injection and ongoing revenue participation in the Asian market's growth.

Corporate Focus and Product Portfolio

Better Choice Company has established itself as an innovative force in the pet health and wellness sector, emphasizing nutrition-based approaches to pet health. The company's Halo brand has gained recognition for its sustainably sourced dog and cat food products, featuring whole meat-based kibble and canned food, alongside minimally processed raw-diet options.

The company's strategic approach aligns with growing consumer trends toward pet humanization and increased focus on health and wellness in pet care. This market positioning, combined with their multi-decade industry experience, has enabled Better Choice to build a strong digital presence providing educational resources for pet parents.

Transaction Timeline

Both parties anticipate finalizing the sale in April 2025, subject to customary closing conditions. The transaction represents a strategic evolution in Better Choice's global operations while maintaining the company's commitment to advancing pet health and wellness through innovative nutrition solutions.