Ademi LLP is investigating Better Choice (NYSE American: BTTR) for possible breaches of fiduciary duty and other violations of law in its transaction with SRx Health.
Better Choice will engage in a reverse merger with SRx Health, with Better Choice owning approximately 15% of the combined company, on a fully diluted basis. The transaction agreement unreasonably limits competing transactions for Better Choice by imposing a significant penalty if Better Choice accepts a competing bid. Better Choice insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Better Choice’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.