Smart for Life, Inc. (NASDAQ:SMFL) shares are trading higher Thursday. The company recently announced the successful completion of its restructuring program. 

What To Know:

The company also converted select debt obligations to equity which resulted in an approximate 6-fold enhancement of the company’s net shareholders’ equity to an expected $6 million. The debt conversions also eliminated significant ongoing interest expense incurred by the company.

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“This sets the stage for the next chapter of Smart for Life, as we have effectively addressed a broad spectrum of challenges facing the Company, while successfully eliminating and converting significant amounts of debt to equity as part of our recapitalization initiatives,” stated Darren Minton, CEO of Smart for Life. 

“These initiatives have strengthened our balance sheet, yielding an expected net shareholder’s equity of $6 million. Additionally, we have reduced losses across all fronts, significantly enhancing the financial viability of Smart for Life. We are now poised to substantially expand our pipeline of potential acquisitions as part of our Buy-and-Build strategy.”

Is SMFL A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Smart for Life‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Smart for Life does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 11.35%, you'll need to buy a share of Nordic American Tankers by June 28, 2024. Once done, you can expect to receive a nominal payout of $0.12 on July 18, 2024.

SMFL Price Action: According to Benzinga Pro, Smart for Life shares are up 55% at $6.09 at the time of publication Thursday.

Image: Courtesy of Smart for Life, Inc.