Healthy Choice Plans Reverse Merger Giving Host Digital 96% Stake as Grocer Seeks New Capital
Updated
Updated · RichmondBizSense · Aug 20
Healthy Choice Plans Reverse Merger Giving Host Digital 96% Stake as Grocer Seeks New Capital
2 articles · Updated · RichmondBizSense · Aug 20
Summary
Healthy Choice said Host Digital’s owners would take control of 96% of its common stock in a reverse merger that would keep Ellwood Thompson’s and the grocer’s other 18 stores under the combined company.
The deal is aimed at recapitalizing the grocery operator, which posted a $6.7 million net loss in the six months through June 30 and had about $900,000 in cash at period-end.
Host Digital brings an Oklahoma data center and AI business, including a 15-year lease signed in early August with an unnamed cloud infrastructure firm; Healthy Choice says that revenue could help fund store reinvestment and expansion.
The merger would also install Host Digital CEO Harmol Samra atop the renamed public company, while Healthy Choice says store branding and local management would remain in place.
Healthy Choice shareholders are due to vote next week on the transaction, which the company also says could improve inventory and ordering through in-house AI after merger-related strain recently left some Ellwood Thompson’s shelves thinly stocked.