SRx Health Solutions (SRXH) Registration Filing summary

Company overview and business model

• Operates as a premium pet health and wellness company, focused on the Halo brand, offering a broad portfolio of pet food and wellness products for dogs and cats, distributed through e-commerce, brick & mortar, and international channels.

• Legacy specialty pharmacy and healthcare services operations were discontinued following bankruptcy and restructuring; current business is solely the Halo pet products segment.

• Halo emphasizes high-quality, science-based nutrition, with products manufactured by established co-manufacturers and a digital-first sales strategy.

• The company underwent a reverse merger in April 2025, with SRx Canada as the accounting acquirer and Better Choice Company as the legal acquirer, resulting in a streamlined business focused on consumer pet products.

Financial performance and metrics

• For the year ended September 30, 2025, net sales from continuing operations were $6.5 million, with a gross profit of $1.5 million and a gross margin of 23%.

• Operating expenses totaled $12.9 million, resulting in a loss from continuing operations of $11.4 million and a net loss of $8.6 million.

• Adjusted EBITDA for continuing operations was $(1.8) million for 2025.

• Cash and cash equivalents as of September 30, 2025, were $1.3 million; the company raised $8.8 million in a private placement and $6.1 million from convertible debt during the year.

• The company maintains a full valuation allowance against deferred tax assets due to ongoing losses and uncertainty of future profitability.

Use of proceeds and capital allocation

• The company will not receive proceeds from the resale of shares by selling stockholders; proceeds from prior financings are allocated to working capital and general corporate purposes.

• Management prioritizes strengthening the financial position, optimizing cost structure, and supporting growth initiatives in the Halo business.