10:29 AM EDT, 09/03/2024 (MT Newswires) -- Better Choice ( BTTR ) said Tuesday it has agreed to acquire Canadian specialty pharmacy network operator SRx Health Solutions in an all-stock deal for about $125 million.

Under the terms of the deal, each SRx common share will be converted into common shares of Better Choice ( BTTR ). At the effective time of the acquisition, SRx security holders will own roughly 85% of the merged entity, with Better Choice ( BTTR ) security holders to account for the rest on a fully diluted basis, the company said.

As part of the deal, Better Choice ( BTTR ) will spin out 8% of the issued and outstanding capital stock of its Halo, Purely For Pets unit to its stockholders immediately before the effective time of the transaction.

The company expects the deal to close in Q4, subject to approval by the stockholders of both companies.

Better Choice ( BTTR ) shares were down nearly 10% in recent trading.

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