Safety Shot's Strategic Acquisition of Yerbaé Brands: A Recipe for Success

Safety Shot, Inc. (Nasdaq: SHOT), a wellness and dietary supplement company, has announced its intention to acquire Yerbaé Brands Corp. (TSX-V: YERB.U; OTCQX: YERBF), a plant-based energy beverage company. This strategic acquisition, expected to close in the second quarter of 2025, aims to create a powerful platform for potential accelerated growth and market leadership in the functional beverages landscape. The acquisition amounts to a basic equity value of $15.2 million and an enterprise value of $19.7 million.

Yerbaé, founded in 2017 by Todd and Karrie Gibson, has captured the attention of health-conscious consumers with its clean, simple, and delicious plant-based energy beverages. With approximately $12 million in revenue for the fiscal year ending 2023, Yerbaé has demonstrated its ability to resonate with a large and expanding market seeking healthier alternatives to traditional energy drinks. Yerbaé's beverages are specifically formulated to provide a more refreshing taste than coffee, with added benefits compared to existing sodas and sparkling waters, and healthier ingredients than traditional energy drinks. Yerbaé's product line aligns with a variety of healthy lifestyles, including non-GMO, Keto, Vegan, Kosher, Paleo, and gluten-free diets.

The acquisition of Yerbaé by Safety Shot is expected to deliver significant cost synergies, driven by G&A and supply chain efficiencies. By combining their respective strengths, Safety Shot and Yerbaé can drive top-line growth, cost synergies, and greater exposure in key retail markets. The combined company will have access to Yerbaé's well-established retail partnerships, including key grocery, convenience, and specialty store channels, which could accelerate product placement and consumer adoption. Additionally, cross-leveraging Yerbaé's strong customer relationships is expected to enable Safety Shot to tap into Yerbaé's existing retail programs and promotional initiatives, which could potentially reduce the time-to-market for Safety Shot's product lines.

The Transaction supports shared logistics and supply chain efficiencies, which could optimize distribution costs and improve margins for both Yerbaé and Safety Shot. Yerbaé's expertise in launching and scaling products can be applied to Safety Shot's product lines, enhancing their visibility and growth trajectory in both the U.S. and Canada. The combined company will have a strong presence in key retail markets, access to high-volume markets, and optimized distribution costs, which will contribute to increased market share.

In conclusion, the acquisition of Yerbaé by Safety Shot is expected to create a significant revenue catalyst for the combined company, driving potential growth in the plant-based energy beverage sector. The combined company will have a strong presence in key retail markets, access to high-volume markets, and optimized distribution costs, which will contribute to increased market share. By leveraging Yerbaé's distribution network and customer relationships, Safety Shot can expand its reach, increase sales velocity, and tap into new markets, ultimately driving top-line growth.