PLANO, TEXAS — Meat snacks maker Stryve Foods, Inc. on Jan. 11 closed on private placement of 2,496,934 shares of its Class A common stock, 7,797,184 pre-funded warrants to purchase shares of common stock, and 10,294,118 accompanying warrants for an estimated $35 million.
Stryve said it plans to use proceeds from the offering for working capital to support near-term growth, capital expansion projects and general corporate purposes. Potential expansion projects include increasing manufacturing capacity and adding manufacturing capabilities by building or procuring other manufacturing facilities, Stryve said.
News of the private offering closing came the same day Stryve’s share price stumbled to a 52-week low of $2.73, down from $3.02 as the close on Jan. 10 and compared with the 52-week high of $14 on Feb. 8, 2021.
“With our recently announced wins regarding the distribution gains at Costco, Walmart and 7-Eleven among others on the horizon, not only will this capital support our near-term growth, but it will also be key as we seek to advance our plans for a second facility and greatly expanding our capacity,” said Joe Oblas, chief executive officer of Stryve. “We are paving the way for the growth of our brands in the future and are excited to be in a position to progress our mission of helping America snack better.”
Stryve, which went public in mid-2021, has a portfolio primarily consisting of air-dried meat snack products marketed under the Stryve, Kalahari, Braaitime and Vacadillos brand names. The company distributes its products in major retail channels, primarily in North America, including grocery, club stores and other retail outlets, as well as directly to consumers through its e-commerce websites and through the Amazon platform.
In October 2021, Stryve unveiled plans to expand its distribution to more than 4,000 additional convenience store and retail locations as part of a new agreement with Speedway and Circle K. Additionally, the company is now part of the nationwide multi-vendor mailer program with Costco, which paves the way for the company’s products to be placed for at least a limited time at all Costco locations in 2022.Stryve sustained a loss of $20.03 million in the nine months ended Sept. 30, 2021, which compared with a loss of $13.04 million in the same period a year earlier. Net sales totaled $23.25 million in the first nine months of fiscal 2021, up from $13.01 million a year ago.