Safety Shot Eyes Market Expansion With $10.6M Capital Raise: Here's What You Need to Know About the Stock Offering

Safety Shot, Inc. (Nasdaq: SHOT) has secured $10.6 million through a strategic financing deal involving both equity and warrant issuance, marking a significant milestone following its recent merger approval with Yerbaé. The wellness supplement company priced its registered direct offering at $0.37 per share—a critical juncture that reveals both opportunity and investor sentiment around the company’s trajectory.

The Financing Breakdown: What’s Actually Happening

The company is issuing 28,648,648 shares of common stock to institutional buyers at $0.37 each through a registered direct offering. Simultaneously, it’s issuing warrants allowing holders to purchase an additional 57,297,296 shares at the same $0.37 exercise price. These warrants are immediately exercisable and expire in five years, creating a potential doubling of the company’s equity base if all are exercised.

So how much is a shot at this valuation? At $0.37 per share, investors are paying roughly that amount for a slice of a company merging with Yerbaé to expand its wellness footprint. The gross proceeds—approximately $10.6 million before fees—will flow directly into operational support and integration of the merged entity.

Why This Financing Matters Right Now

Timing is everything in the stock market. CEO Jarrett Boon framed this offering as “critical” and “pivotal,” arriving just after shareholders blessed the Yerbaé merger. The capital injection isn’t just about padding the balance sheet—it’s designed to enable the company to execute the integration seamlessly, accelerate commercial expansion, and stabilize operations during a transformational period.

The offering operates under a shelf registration with the SEC (Form S-3, File No. 333-282315, effective November 1, 2024), meaning Safety Shot had pre-approved capacity to raise capital efficiently. Dominari Securities served as the exclusive placement agent, suggesting institutional credibility in the deal structure.

The Institutional Investor Landscape

Hedge fund activity around $SHOT tells an interesting story. In recent quarters, 19 institutional investors added shares while 24 reduced positions. Notable movers include:

• XTX Markets and Creative Planning added positions in Q1 2025
• Kingstone Capital Partners increased holdings in Q2 2025
• Major funds like Susquehanna International Group and Jane Street fully exited their positions, each offloading six-figure share amounts

This mixed activity suggests institutional players are carefully evaluating the risk-reward profile of a micro-cap wellness company during a merger integration phase.

The Double-Edged Sword: Dilution Risk

Here’s where investors need to pay attention. At $0.37 per share, the valuation appears depressed compared to historical levels. This pricing could signal either:

1. Investor caution: The market pricing in integration risks and execution uncertainty
2. Aggressive dilution strategy: Issuing nearly 86 million total new shares (common + warrant-exercisable) significantly increases the equity base

If warrant holders exercise their rights, existing shareholders face meaningful dilution. The company is essentially betting that operational improvements and Yerbaé synergies will drive future value appreciation to offset this equity expansion.

About Sure Shot: The Core Product

Safety Shot’s flagship offering is Sure Shot, a patented wellness product marketed to lower blood alcohol content while enhancing clarity, energy, and mood. The product is available through Walmart, Amazon, and the company’s direct-to-consumer site (sureshot.com). The merger with Yerbaé is intended to expand distribution and product portfolio depth.

What Comes Next

The offering is expected to close July 22, 2025. A prospectus supplement will be filed with the SEC providing complete offering terms and risk disclosures. Forward-looking statements in the release acknowledge risks around regaining Nasdaq compliance (an implicit nod to the company’s previous bid price challenges) and other uncertainties inherent to growing wellness companies.

For investors analyzing the deal: the real question isn’t how much is a shot at $0.37, but whether the capital deployed behind it generates enough value creation to justify the dilution. The next 12-18 months of post-merger execution will be decisive.