Safety Shot Inc's Stock Surge Amid FDA Investigation and Share Offering

Introduction

SAFETY SHOT INC (NASDAQ: SHOT) is a wellness and dietary supplement company based in Jupiter, Florida, founded in 2018. The company's flagship product, Sure Shot (formerly known as Safety Shot), is recognized as a patented rapid alcohol reducer. It supports the body’s metabolism of ethanol, with claims made for reducing blood alcohol content in as little as 30 minutes.

Corporate Structure

Under the leadership of CEO Jarrett Boon, Safety Shot operates with a team of eight employees. The company focuses on collaboration and leverages expertise in beverage formulation, health sciences, and marketing. Safety Shot has established partnerships with various brand ambassadors, including Druski, to enhance brand visibility and consumer engagement.

Alcohol recovery by Sérgio Alves Santos

Recent Developments and News

• March 4, 2025: Safety Shot announced the publication of its first peer-reviewed, randomized double-blind clinical trial in the Journal of Nutrition and Dietary Supplements. The study indicated statistically significant reductions in blood and breath alcohol concentrations (p < 0.05) and observed improvements in hangover symptoms compared to placebo.
• June 12, 2025: At the virtual Annual Shareholders’ Meeting, key proposals included the approval of a share issuance linked to the acquisition of Yerbaé Brands Corp., amendments to the 2024 equity incentive plan, authorization for up to 20 million new shares to Core 4 Capital Corp., and a potential reverse stock split of 1-for-5 to 1-for-35.
• June 16–18, 2025: To address liabilities of approximately $14.58 million, the company issued 7,275,915 common shares to Silverback Capital Corporation, resulting in a settlement of $1,461,800. Additionally, on June 18, 1,157,407 shares were sold under a Securities Purchase Agreement for $250,000 at $0.216 per share.
• July 23, 2025: The company filed a Form 424B5 prospectus to offer 22,993,492 shares of common stock at $0.461 per share, targeting gross proceeds of $10.6 million (net of placement agent fees: $9.75 million). The offering includes warrants exercisable at $0.461, with a purchase price of $0.125.
• FDA Investigation: The Food and Drug Administration (FDA) has initiated an investigation into Safety Shot’s manufacturing facility and marketing claims based on complaints received between September and November 2023. Inspections were recommended for early 2024, with follow-up inspections noted in April 2024.

Financial and Strategic Analysis

As of July 23, 2025, SHOT closed at $0.9975, reflecting a gain of 35.05% on a trading volume of 5,272,461 shares. Average daily trading volume is reported between 3.1 million and 7.68 million shares. Market capitalization estimates range from $23.8 million to $110.5 million. The stock has been rated Neutral by TipRanks, citing valuation concerns and past performance issues, though the pending acquisition of Yerbaé could serve as a potential catalyst. The planned $10.6 million equity offering and prior settlements aim to strengthen the company's financial position.

Market Position and Industry Context

Safety Shot operates within the functional beverage segment with a specific focus on alcohol recovery. The patented formula aims to differentiate it from competitors by purportedly facilitating faster reductions in blood alcohol levels. Rebranded as Sure Shot in Q4 2024, the product combines electrolytes and liver-support ingredients. The company is expanding its distribution through partnerships and retail launches, including recent availability on Amazon, while the acquisition of Yerbaé Brands Corp. is projected to enhance annual revenue by approximately $12 million.

tl;dr

SHOT shares rose 35.05% to $0.9975 on July 23, 2025, following a filed $10.6 million share offering (Form 424B5) and ongoing shareholder votes on equity issuance and a reverse split. Clinical data published March 4 indicated reductions in alcohol levels and hangover relief. The acquisition of Yerbaé Brands Corp. aims for an additional $12 million in revenue. The FDA investigation into manufacturing and marketing claims is in the preliminary stages. The company's outlook depends on capital raises, regulatory outcomes, and the integration of Yerbaé.