Proceeds to Accelerate Revenue Growth Through Sales Initiatives and Additional Product Launches
Transformative Event Includes Conversion of Approximately $6 Million of Debt into Equity, $4.5 Million of Warrant Conversions and Conversion of $1.2 Million of Accrued Compensation by Management and the Board of Directors
MIAMI, May 31, 2023 (GLOBE NEWSWIRE) — Smart for Life, Inc. (NASDAQ:SMFL) (“Smart for Life” or the “Company”), a high growth global leader in the Health & Wellness sector marketing and manufacturing nutritional foods and supplements worldwide, today announced the release of a video statement by Darren Minton, CEO of Smart for Life, regarding the company’s successful initiatives as it refinances its capital structure, enhances its balance sheet and utilizes the proceeds to accelerate revenue growth.
These initiatives include the Company’s previously announced conversion of approximately $6 million of debt into equity, as well as over $1.2 million of deferred compensation for Smart for Life’s executive management team and the Company’s board of directors into equity under the same terms. More specifically, the aforementioned conversions are being made into the Company’s Series B preferred stock, par value $0.0001 per share, that is convertible into common stock at an exercise price of $2.23 per share. Lastly, more than 3.5 million shares of warrant conversions have been exercised, resulting in gross proceeds in excess of $4.5 million for Smart for Life.
“Our management team and board of directors are excited to announce this successful reorganization of our capital structure and achieving a significant transformation of our balance sheet,” stated Darren Minton, CEO of Smart for Life. “Not only does this include conversion of $6 million of debt to equity and $1.2 million of deferred compensation by the executive management team and board of directors that we previously announced on Friday, but we also announced warrant exercises, resulting in a cash infusion of over $4.5 million into Smart for Life. We believe these major milestones further support our Nasdaq listing, as well as position Smart for Life for significant growth over the coming weeks and months with additional product launches and sales activity. We look forward to providing additional updates shortly on our exciting operational achievements and further news on our M&A developments in short order.”
The video statement featuring Smart for Life’s CEO Darren Minton can be found here:
www.smartforlifecorp.com/2023/05/29/video-smfl-ceo-darren-minton/.
