Srx Health Solutions, Inc. · AMEX:SRXH
Srx Health Solutions — Better Choice — Merger or Acquisition (September 2024)
20 slides from Srx Health Solutions's merger presentation, Sep 9, 2024
Slide 1: Better Choice Company to acquire SRx Health Solutions
BETTER SR CHOICE caus, COMPANY SOLUTIONS Better Choice Company to acquire SRx Health Solutions Investor Presentation September 2024 NYSEAM | BTTR
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS ‘The information in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contai
Slide 3: Emerging as a Global Health and Wellness Company
EMERGING AS A GLOBAL HEALTH AND WELLNESS COMPANY PROVIDING BETTER PRODUCTS AND SOLUTIONS FOR PETS, PEOPLE & FAMILIES BETTER CHOICE COMPANY weaicra
Slide 4: Leadership Team Post Closing
LEADERSHIP TEAM POST CLOSING Michael Young Lead Director Better Choice Company Michael Young is the founding partner of Cottingham Capital. He began investing in Nashville real estate in 2014 after identifying Nashville for both lang term growth and a value against other US. real- estate markets. Mi
Slide 5: SRx Focus on Specialty Care
SRx FOCUS ON SPECIALTY CARE Specialty pharmacies dispense specialty drugs which require exclusive distribution rights, extensive training and experience, and sophisticated infrastructure, each of which takes significant time and effort to attain What are Specialty Drugs? Barriers to Access The barri
Slide 6: SRx Product and Service Offerings
SRx PRODUCT AND SERVICE OFFERINGS Py Patient Support Clinics and Infusion Wholesale and Clinical Programs Spaces Distribution Research + Work with our partners * Anetwork of 40 clinics * Distribution of a wide variety + 4 sites within to facilitate access for and infusion spaces of specialty and gen
Slide 7: Strong Industry Tailwinds
STRONG INDUSTRY TAILWINDS Growing Prevalence of Chronic Disease in Seniors of Canadians aged 65+ 73% J} report having at least 1 chronic disease of Canadians aged 65+ 33% report having 2 or more chronic diseases? ¥ 52% J prescription The Need for Specialty Pharmacists in Canada 5 million Canadians a
Slide 8: Halo Brand Overview
2023 Gross Sales: ~$49M 1-9) HALO BRAND OVERVIEW by Brand Packed with nutrients. Minimally processed. Rich in flavor. For pet parents seeking all the benefits of a raw diet with the ease and convenience of freeze-dried raw food or snacks and treats Holistic mElevate Halo Designed for the pet parent
Slide 9: Market Opportunity
MARKET OPPORTUNITY » The US pet industry continues to grow at a healthy trajectory, with steady growth expected to continue = Pet sector enjoys si investor interest Favorable underlying trends driving demand Greater E-Commerce potential than traditional food One of the most recession resistant indus
Slide 10: Premiumization and Humanization Macro Trends
PREMIUMIZATION AND HUMANIZATION MACRO TRENDS CONTINUE TO FUEL PET GROWTH ‘TWO-THIRDS OF U.S. HOUSEHOLDS HAVE AT LEAST ONE PET NEARLY 70% OF PET OWNERS STRONGLY AGREE THEIR PETS ARE IMPORTANT MEMBERS OF THE FAMILY cee. 0% — 10% += 20% += 30% += 40% += 50% ~=— 60% ©=— 70% ©=— 80% a IY PETS AN IMPORTAN
Slide 11: Summary Income Statement: Better Choice Pre-Acquisition
SUMMARY INCOME STATEMENT: BETTER CHOICE PRE-ACQUISITION fo tnt 150 saeore sea oe Net sales 8,542 16,445 38,592 Cost of goods sold 5,289 10,578 26,795 Gross profit 3,253 5,867 11,797 Selling, general and administrative 3,977 9,057 24,444 Net income (loss) 2,654 (176) (22,770) EBITDA* 2,871 439 (19,73
Slide 12: Summary Income Statement: SRx Health Solutions
SUMMARY INCOME STATEMENT: SRx HEALTH SOLUTIONS 3 months ended 6 months end 12 months ended (in thousands of CAD) June 2024* June 2024* December 2023* Revenue 58,361 107,297 180,264 Cost of sales 45,482 85,005 145,271 Gross profit 12,879 22,292 34,993 General and administrative 13,646 27,069 45,052 D
Slide 13: Pro Forma Capitalization Table
PRO FORMA CAPITALIZATION TABLE Pro Forma Including Shares to be Issued to SRx Health Solutions 22,516,679 Options (waep: $115.42) 125,310 Warrants (WaeP: $148.64) 269,345 Fully Diluted Shares Outstanding’ 22,911,334 Combined Net Debt (usp)? $20.7 MM Ownership? Insiders T5%+ "Insiders = Non-Affiliate
Slide 14: Investment Highlights
INVESTMENT HIGHLIGHTS COMBINED COMPANY SYNERGIES QO ‘SG8UA EFFICIENCIES NEW VERTICALS AND GEOGRAPHIC EXPANSION OPPORTUNITIES br) LEVERAGING SRX DRUG EXPERTISE IN “VETERINARY MEDICINE ROBUST GROWTH OPPORTUNITIES IN EACH SEGMENT + Expanding Footprint in APAC + Accelerating Organic Growth Strategic Acq
Slide 15: Appendix
APPENDIX
Slide 16: Better Choice, A Global Health and Wellness Company
BETTER CHOICE, A GLOBAL HEALTH AND WELLNESS COMPANY PORTFOLIO OF ESTABLISHED PREMIUM. AND SUPER-PREMIUM PET PRODUCTS Sale holistic LEVERAGING THE HUMANIZATION AND PREMIUMIZATION OF PETCARE Partners } __Rapicly Growing international Sales & Significant Online Recurring Revenue Base @)_ Asset Light Mo
Slide 17: Board of Directors Post Closing
BOARD OF DIRECTORS POST CLOSING Adesh A. Vora, Pharm. D. Chairman ‘Adesh Vora isthe founder, President and Chief Executive Officer of SRx Health Solutions. He brings over 24 years of pharmacy and healthcare experience to 'SRx and leads the company with both a deep knowledge of and passion for the Ca
Slide 18: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Better Choice Pre-Acquisition 3 months ended (in thousands of USD) June 2024* Net loss available to common stockholders 2,654 Interest expense, net 180 Income tax expense 3 Depreciation and amortization 34 EBITDA 2871 Non-cash share-based comp
Slide 19: Reconciliation of Net Loss to EBITDA and Pro Forma Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Pro Forma Adjusted EBITDA - SRx Health Solutions Pre-Acquisition 3 months ended 6 months ended 12 months ended (in miltions of CAD) June 2024* June 2024* December 2023* Net loss (32) (10.4) (ga) Depreciation 16 32 44 Interest expense 15 31 36 Income tax expen
Slide 20: Investor Contact
INVESTOR CONTACT: C H 0 I Cc E KCSA Strategic Communi Valter Pinto, Managing Director COMPANY T: 212-896-1254 falter@KCSA.com
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