Better Choice and SRx Health Shareholder Update: Date: October 15, 2024 скачать в хорошем качестве

Better Choice and SRx Health Shareholder Update: Date: October 15, 2024

KCSA’s Valter Pinto hosted a shareholder update call featuring the leadership teams of Better Choice and SRx Health, providing an update on the proposed all-stock acquisition of SRx Health for approximately $125 million and the strategic rationale behind the combination. Better Choice Chairman Michael Young described the transaction as transformational, citing expanded distribution, immediate cost synergies estimated at $1.5–$1.7 million, and additional upside as the businesses integrate, with SRx Health founder and CEO Adesh Vora expected to lead the combined company following an anticipated late Q4 2024 or early Q1 2025 close (02:00). SRx Health management outlined the company’s growth into a national specialty healthcare platform in Canada, supported by specialty pharmacy services, patient support programs, clinic networks, and wholesale distribution, highlighting strong industry tailwinds and organic growth driven by pharmaceutical partnerships. Better Choice executives reviewed progress at the Halo pet nutrition business, emphasizing premium positioning, e-commerce growth through platforms like Amazon and Chewy, and international expansion, particularly in Asia. Financial leaders from both companies highlighted improving margins, operating leverage, and a pro forma outlook of $250–$270 million in combined revenue with $7–$10 million in EBITDA, while Q&A addressed integration synergies, geographic expansion plans, and management’s view that the company’s stock trades below tangible book and net asset value, pointing to potential undervaluation as the merger approaches completion (12:12).