SMFL - Smart for Life Announces Updates on Successful Completion of Restructuring Program | Benzinga
MIAMI, May 28, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (NASDAQ:SMFL) ("Smart for Life" or the "Company"), a distinguished leader in the Health & Wellness sector specializing in the marketing and manufacturing of nutritional supplements and foods, today announced further updates on the successful completion of the Company's comprehensive restructuring program.
As previously announced, the comprehensive program included recapitalization of the Company with equity and debt financings, the sale of certain non-performing assets, the sale and leaseback of the Company's 18,000 sq. ft. Doral manufacturing facility, the sale of 51% of Ceautamed Worldwide, LLC, a subsidiary, for $3.4 million and the successful liquidation of the Company's senior debt facility with Diamond Creek Capital. In addition, the Company converted substantial debt obligations to equity materially improving the Company's balance sheet resulting in an approximate 6-fold positive enhancement of the Company's Net Shareholders' Equity to an expected $6 million. The debt conversions also eliminated significant ongoing interest expense incurred by the Company.
"This sets the stage for the next chapter of Smart for Life, as we have effectively addressed a broad spectrum of challenges facing the Company, while successfully eliminating and converting significant amounts of debt to equity as part of our recapitalization initiatives," stated Darren Minton, CEO of Smart for Life. "These initiatives have strengthened our balance sheet, yielding an expected net shareholder's equity of $6 million. Additionally, we have reduced losses across all fronts, significantly enhancing the financial viability of Smart for Life. We are now poised to substantially expand our pipeline of potential acquisitions as part of our Buy-and-Build strategy."
Accelerated Acquisition Pipeline Development
As part of the Company's restructuring and business development initiatives, the Company added two prominent nutraceutical executives to the Company's Board of Directors and as advisors. As part of their prospective activities, they will communicate to the industry at large the Company's increased business development and buy-side initiatives.
On April 18, the Company announced the election of Heather Granato to the Company's Board of Directors. Ms. Granato, a prominent industry executive, brings decades of nutraceutical industry experience, a career in journalistic outreach, content creation and marketing initiatives to Smart for Life and the Board.
On March 11, the Company announced the election of Loren Brown to the Company's Board of Directors as well as an advisor ...