Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ:SNAX), an emerging healthy snack and eating platform disrupting traditional consumer packaged goods (CPG) categories, and a leader in the air-dried meat snack industry in the United States, announced securing an additional $4.1 million in funding to support its growth.
“We are pleased to secure additional financing to fund our working capital needs, which will allow us to fuel our growth as we deliver against our increasing demand,” commented Chris Boever Chief Executive Officer. “With our strategic plan progressing as expected, we see significant improvements in our cost model across our business. Our productivity program is unlocking operational improvements resulting in further cost reductions and better margins. Customer response to our category growth solution and new packaging has been exceptional. We are pleased with our progress and committed to our long-term financial goals.”
“We have secured approximately $4.1 million in additional debt financing to support the business and allow us to execute on our near-term ramp in quality distribution,” commented Alex Hawkins Chief Financial Officer.
The $4.1 million in debt financing is in the form of secured promissory notes subordinate to Stryve’s senior lenders and was funded by a combination of various accredited investors and Stryve insiders. The notes accrue interest annually at a rate of 12%. Each Lender that purchased notes received a warrant to purchase one share of the Company’s Class A common stock for each $0.5134 of the principal amount of the Notes, for an aggregate of 7,964,550 Warrants. Each Warrant is exercisable immediately at an exercise price of $0.5134 and will expire three years and three months from the date of issuance.
