JUPITER, FL - Safety Shot, Inc. (NASDAQ:SHOT), a company specializing in alcohol detoxification beverages, has successfully completed a private placement, raising $5 million in funding from Core 4 Capital Corp. This transaction took place on Monday, with the issuance of 2,369,668 shares at a price of $2.11 each, without any attached warrants.
The company emphasized the efficiency of the capital raise, noting that it paid no commissions and incurred minimal expenses, allowing most of the proceeds to directly benefit the firm. Safety Shot's CEO, Jarret Boon, expressed enthusiasm over the investment, which was made at market price by a single institutional investor, indicating confidence in the company's direction and leadership.
The new funds are designated for general corporate purposes and will primarily support the development of Safety Shot's flagship product, aimed at rapid alcohol detoxification. This beverage is part of a strategy to tap into the $1.56 billion alcohol detoxification market by offering a unique solution for reducing blood alcohol content and enhancing mental clarity.
Safety Shot's product is based on a scientific formulation that includes natural vitamins, minerals, and nootropics to accelerate the metabolic breakdown of alcohol in the body. Since its retail launch in December 2023, the beverage has been available for purchase on the company's website and Amazon.com (NASDAQ:AMZN), with plans to expand distribution channels to include business-to-business sales in the upcoming year.
This financial move is part of Safety Shot's broader strategy to establish a new product category within the alcohol detox market and to continue its growth trajectory in the industry. The information in this article is based on a press release statement from Safety Shot, Inc.
InvestingPro Insights
As Safety Shot, Inc. (NASDAQ:SHOT) secures fresh capital to fuel its growth ambitions, investors and industry observers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Safety Shot holds a market capitalization of $106.32 million, reflecting the market's current valuation of the company. Despite a challenging period, with the stock price taking a significant hit over the last week, resulting in a -11.72% one-week price total return, the company's long-term outlook remains optimistic with analysts anticipating sales growth in the current year.
InvestingPro Tips highlight that Safety Shot is a niche player in the alcohol detoxification industry, which could offer a unique competitive advantage. However, the company's financials reveal some challenges, with a negative gross profit margin of -36.74% for the last twelve months as of Q1 2023. This indicates that the company spends more on the cost of goods sold than it earns in revenue, a situation that could impact its bottom line if not addressed. Additionally, the stock is known for its high price volatility, a factor that risk-averse investors might consider carefully.
For those considering an investment in Safety Shot, it's worth noting that the company holds more cash than debt on its balance sheet, a positive sign of financial stability. Moreover, the company's liquid assets exceed its short-term obligations, suggesting that it has the liquidity to meet its immediate financial commitments. Interested investors can find more in-depth analysis and additional InvestingPro Tips by visiting https://www.investing.com/pro/SHOT, and can take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24. With 14 more InvestingPro Tips available, there's a wealth of information to help make informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.