Wellness and dietary supplement company, Safety Shot Inc. (NASDAQ:SHOT) shares are trading lower on Wednesday after the company and plant based beverages maker Yerbaé Brands Corp. (OTC:YERBF) finalized an agreement to merge.
The deal aims to integrate Safety Shot's wellness products with Yerbaé's plant-based energy drinks, potentially accelerating market growth and enhancing both companies' presence.
The acquisition amounts to a basic equity value of $15.2 million and an enterprise value of $19.7 million.
The proposed merger is expected to offer cost synergies, operational efficiencies, and greater exposure in key retail markets. The deal also aims to leverage both companies' supply chain networks for cost savings.
Yerbaé's plant-based energy drinks generated approximately $12 million in revenue for the 2023 fiscal year.
The global plant-based energy drink market is projected to grow at a compound annual growth rate of 6.7% from 2024 to 2033, reaching a value of $10.5 billion by 2033.
After the closing of the transaction, SHOT shareholders will own approximately 75.8% and former holders of the Yerbaé shares are expected to own about 24.2% of the combined company.
The Transaction is expected to close in the second quarter of 2025, subject to satisfying certain customary closing conditions.
Safety Shot held $1.4 million in cash and equivalents as of Sept. 30, 2024.
Price Action: SHOT shares are down 1.8% at $0.73 at last check Wednesday.
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