Safety Shot, Inc., a Delaware-incorporated firm specializing in perfumes, cosmetics, and other toilet preparations, with a market capitalization of $29.9 million, has entered into a significant agreement with an accredited investor for the private sale of equity securities. InvestingPro analysis indicates the company maintains a healthy liquidity position with a current ratio of 1.9x, though it faces challenges with cash burn rates.
On Monday, the company agreed to sell 2,277,389 shares at a price of $0.4391 per share, amounting to a gross proceeds of $1 million. This price represents a 20% discount from the common stock's closing price as of January 14, 2025.
The transaction, detailed in a recent Form 8-K filing with the Securities and Exchange Commission, is a private investment in public equity (PIPE) deal. Such deals typically involve the sale of stocks, convertible securities, or warrants to private investors at a negotiated price. The shares sold to the investor are not registered at the time of the sale and are subject to restrictions on resale.
The sale of unregistered securities is being conducted under exemptions from registration requirements provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. These exemptions allow companies to raise capital without the need for a public offering, provided they meet certain criteria, including selling only to accredited investors and not using public solicitation.
Safety Shot, Inc., formerly known as Jupiter Wellness, Inc. and CBD Brands, Inc., has its principal executive offices in Jupiter, Florida. The company's common stock and warrants are traded on The Nasdaq Stock Market LLC under the symbols SHOT and SHOTW, respectively. Each warrant is exercisable for one share of common stock at $8.50 per share. With a beta of 1.9, the stock shows higher volatility than the broader market. InvestingPro subscribers can access 15 additional key insights about the company's performance and prospects.
The recent capital raise through the SPA underscores the company's continued efforts to secure funding for its operations and growth initiatives. Analysts project significant revenue growth of 189% for the current fiscal year, according to InvestingPro data. This move may be of interest to investors who track private placement transactions and their implications for a company's capital structure and shareholder composition, particularly given that InvestingPro's Fair Value analysis suggests the stock is currently undervalued.
The information for this article is based on a press release statement filed with the SEC.
In other recent news, Safety Shot Inc. is facing potential delisting from the Nasdaq Stock Exchange due to non-compliance with the minimum bid price requirement. The company has until July 1, 2025, to regain compliance. Despite this, analysts forecast substantial revenue growth for the company this year.
Simultaneously, now rebranded as Sure Shot, the company has launched its Sure Shot beverage in over 300 locations of a leading Midwestern grocery chain and has expanded its retail presence to over 450 stores across metro Chicago and southern Wisconsin. These expansions are part of a broader strategy to reach health-conscious consumers.
The company has also received significant financial backing from President Jordan Schur through Core 4 Capital Corp., totaling $9.4 million this year. These are recent developments that highlight Sure Shot's commitment to growth and innovation in the functional beverage space.
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