secwatch.observer — SEC 8-K summary
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Issuer:     SMART FOR LIFE, INC. (—)
CIK:        0001851860
Form:       8-K
Filed at:   2024-04-09T23:59:59+00:00
Accession:  0001213900-24-031639
Event type: m_and_a
Sentiment:  positive
Materiality: 0.75
Item codes: 1.01, 3.02, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Smart for Life to acquire Purely Optimal Nutrition for ~$12M; expects >$8M annual revenue
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- Purchase price of $11,965,966 consists of $7,859,580 cash and 18,414 shares of Series D convertible preferred stock.
- Acquisition valued at 6x reconstructed EBITDA of approximately $1.47M for the trailing twelve months ended Nov 30, 2023.
- Purely Optimal had trailing twelve-month revenue >$8M and adjusted EBITDA >$1M; expected close within 8 weeks.
- Sellers agreed to two-year non-compete; indemnification: 10% deductible, 35% cap for non-fundamental breaches.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1851860/000121390024031639/0001213900-24-031639-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1851860/000121390024031639/ea0203574-8k_smart.htm
  HTML page:      https://secwatch.observer/filing/0001213900-24-031639

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer