Wellness and dietary supplement company Safety Shot has entered into a separation and exchange agreement with its subsidiary, Caring Brands.
Safety Shot is divesting the natural-based therapeutics and wellness products division in order to issue a dividend to shareholders. This agreement will allow Caring Brands to operate as an independent entity.
The wellness products developer is transferring its wellness consumer products segment to Caring Brands. This transfer includes assets, intellectual property, and liabilities.
Caring Brands specialises in natural therapeutics for hair growth, psoriasis, vitiligo, and eczema.
According to the supplement firm, the separation will enable both companies to pursue distinct strategies. As a result, shareholders can now evaluate the performance of each business separately.
Caring Brands will cover all costs related to its wellness operations. The company plans to go public with an initial public offering (IPO) in the next three months.
As part of the agreement, the wellness and dietary supplement company will receive three million shares of Caring Brands stock.
To enhance shareholder value, the Board plans to issue a dividend of two million shares to Safety Shot shareholders.
The decision will also allow the firm to focus on the commercialisation of the Safety Shot Dietary Supplement, which is its proprietary supplement that reduces blood alcohol content by supporting the metabolism of alcohol.
Furthermore, the supplement company is increasing its market presence through business-to-business sales to distributors, retailers, restaurants, and bars throughout 2024.
The Safety Shot Dietary Supplement is available for purchase on the company’s website and on Amazon.
To target the college market, the firm recently partnered with Launchpad, to raise awareness for its product among students.
The supplement company has also received a $3.4m private placement this month from Safety Shot president Jordan Schur, via Core 4 Capital. Previous investments includes $5m in April and $1m in June, totalling $9.4m this year.
In addition, Safety Shot has expanded its product range and established partnerships with Atlantic Beverage Distributors, Prime CSB, and KeHE Distributors to increase product reach across the US.
Last month, the supplement company announced its plans to launch its flagship product in stick packs, an on-the-go powder format.
