Editor’s note: Better Choice Co.’s management team provided an update here expressing confidence about the company’s future.
Better Choice Co. noted “substantial doubt” about its “ability to continue as a going concern” in a recent filing with the U.S. Securities and Exchange Commission.
The pet food maker cited financial losses along with covenants that require it to maintain a minimum level of liquidity, Dow Jones Newswires reports.
“The Company does not currently expect it will be able to generate sufficient cash flow from operations to maintain sufficient liquidity to meet the required financial covenant in certain periods prior to maturity giving the lender the right to call the debt,” Better Choice stated.
Dow Jones noted that firms issue warning of this type when doubts emerge “about their ability to remain in business a year out.”
The statements appeared in the company’s earnings report for the quarter that ended June 30.
Better Choice sells products including foods, treats, toppers, chews and supplements under its Halo brand.