Smart for Life Inc (NASDAQ: SMFL) opened more than 70% up on Thursday after the nutraceutical company said it has successfully completed a restructuring plan.
Smart for Life stock rallies following recapitalisation
The company made out of Florida, United States made several changes as part of the said restructuring programme to position itself well for the “next chapter”.
These included recapitalization and unloading its non-performing assets. Darren Minton – the chief executive of Smart for Life said in a press release today:
We have effectively addressed a broad spectrum of challenges while successfully eliminating and converting significant amounts of debt to equity as part of our recapitalization initiatives.
Smart for Life stock is still down some 50% versus its year-to-date high. Shares of the nutraceutical firm do not pay a dividend either at writing.
When will $SMFL report its Q1 earnings?
Smart for Life did also sell its Doral manufacturing facility and leased it back as part of its restructuring initiative. CEO Minton also said on Thursday:
These initiatives have strengthened our balance sheet, yielding an expected net shareholder’s equity of $6.0 million.
Nasdaq.com estimates $SMFL to post its quarterly earnings report on June 3rd. The company itself, however, has not yet confirmed when it will report its financial results for Q1. In the same quarter last year, Smart for Life lost $4.3 million.
Smart for Life shares are not widely covered by the Wall Street analysts. Those that do, however, rate it at “hold” at writing.
What else was part of Smart for Life restructuring?
Note that Smart for Life recently liquidated its senior debt facility the Las Vegas based financial services firm Diamond Creek Capital.
The nutraceutical company also sold 51% of Ceautamed Worldwide as part of the aforementioned restructuring plan. According to CEO Darren Minton:
We have reduced losses across all fronts, significantly enhancing financial viability of $SMFL. We’re now poised to substantially expand our pipeline of potential acquisitions as part of our Buy-and-Build strategy.
The Nasdaq list firm named Loren Brown and Heather Granato to its Board as well. Both experts have significant experience in the nutraceutical space.
On Thursday, more than 28 million shares of $SMFL have exchanged hands as of writing. That’s up massively from its daily trading volume of under one million on average. Smart for Life currently has a market cap of over $0.6 million.
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