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CBD Firm Closes on $47M Acquisition of Holistic Pet Food Company

Halo is a natural pet food brand with a 30-year operating history.

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NEW YORK — Better Choice Company Inc., an animal health and wellness CBD company, announced the closing of its acquisition of holistic pet foods company Halo, Purely for Pets and $28 million financing.

Halo is a natural pet food brand with a 30-year operating history. Halo’s products consist of a diversified dog and cat portfolio, derived from real whole meat and no rendered meat meal. E-commerce is Halo’s largest and fastest- growing distribution channel, complementing its brick-and-mortar presence in leading U.S. retail outlets, including PetSmart and Petco.

Plans for the acquisition were announced in October.

The Halo acquisition fits with the animal health and wellness strategy of Better Choice with its existing brands that include direct-to-consumer premium dehydrated raw pet food through TruDog, Orapup, TruCat and Rawgo, as well as hemp-derived CBD pet products.

As part of the transaction, Halo CEO Werner Von Pein and Chief Strategy Officer Rob Sauermann, will remain part of the team to lead the operations of this subsidiary, continue to grow distribution via e-commerce, explore food/drug/mass channel expansion opportunities and maintain revenue internationally.

Total consideration for the Halo acquisition is about $46.9 million.

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“We are pleased to close on our financing and welcome Halo to the Better Choice portfolio of premium animal health and wellness brands,” said Damian Dalla-Longa, CEO of Better Choice. “Halo will add to our existing consumer product goods portfolio a global, e-commerce presence as well as operational, financial and commercial synergies. The addition of Werner and Rob will add depth to our team and provide us invaluable strategy and insight going forward.”

“Rob, myself and the rest of the Halo team are eager to join Better Choice in our shared mission to provide better health options for animals,” said Werner von Pein, CEO of Halo. “As part of Better Choice, we will focus on expanding our company’s footprint providing a greater reach of our quality holistic pet foods.”

Total consideration for the acquisition includes $23.5 million in cash, $15 million in junior subordinated purchaser notes and $8.5 million of common equity.

Additional details:

Under the terms of the offering, Better Choice Company has closed on $28 million in aggregate principal amount of Senior Secured Credit Facilities. Interest on the Notes will have a 12% annualized cash interest payable monthly, maturing 12 months from the date of issuance with no prepayment penalty. The financing is also accompanied with $20.0 million of personal guarantees from Insiders and key Stakeholders.

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