NEW YORK — Pet health and wellness company Better Choice Company, Inc. announced March 26 it had initiated legal action against Alphia in an effort to compel Alphia to complete its acquisition of Better Choice’s Halo, Purely for Pets, Inc. subsidiary. 

In June 2023, Better Choice received a $5 million investment from Alphia, who is owned by PAI Partners, though which Alphia serves as the manufacturer of the company’s Halo brand. According to Better Choice, Alphia is obligated to acquire all assets of Halo, but has yet to close the sale. 

Better Choice is enforcing a right of first refusal (ROFR) option to force the closing of the acquisition. The company is also seeking $19 million in monetary damages, in the alternative, caused by Alphia’s “misconduct in connection with the ROFR.”

“After several unsuccessful attempts to communicate with both Winston Song of PAI Partners and David McLain, the CEO of Alphia, and given the significant burden imposed upon Better Choice by Alphia’s refusal to close the transaction, Better Choice had no viable option other than to pursue legal action to enforce the terms of the ROFR, as well as all of its rights,” said Michael Young, Better Choice Chairman.

The claim was filed in the Circuit Court of the 13th Judicial Circuit in Hillsborough County, Fla.

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