SEC Form SC 13G/A filed by Smart for Life Inc. (Amendment)

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G/A

Under the Securities Exchange Act of 1934
(Amendment No. 1)*

SMART FOR LIFE, INC.

(Name of Issuer)

Common Stock, par value $0.0001 per share

(Title of Class of Securities)

83204U103

(CUSIP Number)

December 31, 2022

(Date of Event which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

☐ Rule 13d-1(b)
☒ Rule 13d-1(c)
☐ Rule 13d-1(d)

^* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

Item 1(a). Name of Issuer:

Smart for Life, Inc. (the “Issuer”)

Item 1(b). Address of Issuer’s Principal Executive Offices:

The Issuer’s principal executive offices are located at 990 S Rogers Circle, Suite 3, Boca Raton, FL 33487.

Item 2(a). Names of Persons Filing:

The foregoing person is hereinafter sometimes collectively referred to as the (“Reporting Persons”). Any disclosures herein with respect to persons other than the Reporting Persons are made on information and belief after making inquiry to the appropriate party.

The Reporting Persons have entered into a Joint Filing Agreement, a copy of which is filed with this Schedule 13G as Exhibit 1, pursuant to which they have agreed to file this Schedule 13G jointly in accordance with the provisions of Rule 13d-1(k) of the Act.

The filing of this statement should not be construed in and of itself as an admission by the Reporting Person as to beneficial ownership of the securities reported herein.  

Item 2(b). Address of Principal Business Office or, if none, Residence:

The principal business address of each of the Reporting Persons is 3053 Fillmore St, Suite 256, San Francisco, CA 94123.

Item 2(c). Citizenship:

Ionic is a limited liability company organized under the laws of California. Each of Mr. Coulston and Mr. O’Neil is a citizen of the United States.

Item 2(d). Title of Class of Securities:

The title of the class of securities to which this statement relates is the Common Stock, par value $0.0001 per share.

Item 2(e). CUSIP Number: 83204U103 

Item 3. If This Statement is Filed Pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), Check Whether the Person Filing is a:

Not applicable.

Item 4. Ownership.

The information required by this item with respect to each Reporting Person is set forth in Rows 5 through 9 and 11 of the cover page to this Schedule 13G and is incorporated herein by reference for each such Reporting Person. The ownership percentages reported are based on 36,103,067 shares of Common Stock outstanding as of December 20, 2022, as reported in the Issuer’s Prospectus Supplement on Form 424B3, filed with the U.S. Securities and Exchange Commission on January 3, 2023.

As of December 31, 2022, the Reporting Persons hold (i) 2,166,160 shares of Common Stock, and (ii) (A) 40,176,572 Amended and Restated Common Stock Purchase Warrants, which are exercisable for 40,176,572 shares of Common Stock; 13,392,197 Amended and Restated Common Stock Purchase Warrants, which are exercisable for 13,392,197 shares of Common Stock; 1,180,447 Debenture Pre-Funded Common Stock Purchase Warrants, which are exercisable for 1,180,447 shares of Common Stock; 300,000 Series A Warrants, which are exercisable for 300,000 shares of Common Stock; and 286,654 Pre-Funded Common Stock Purchase Warrants, which are exercisable for 286,654 shares of Common Stock (collectively, the “Warrants”), and (B) 1,000 shares of Series A Convertible Preferred Stock of the Issuer, which are convertible into 1,499,925 shares of Common Stock (the “Preferred Stock”), in each case, subject to a blocker (the “Blocker”).

Due to the Blocker, is the Reporting Persons are prohibited from exercising the Warrants for shares of Common Stock and converting the Preferred Stock into shares of Common Stock if, as a result of such exercise or conversion, the holder, together with its affiliates and any persons acting as a group together with such holder or any of such affiliates, would beneficially own more than 4.99% of the total number of shares of Common Stock then issued and outstanding immediately after giving effect to the exercise or conversion. Consequently, as of December 31, 2022, the Reporting Persons were not able to exercise any of the Warrants or convert any of the Preferred Stock due to the Blocker.

As of December 31, 2022, Ionic was the beneficial owner of 2,166,160 shares of Common Stock (the “Shares”). Ionic has the power to dispose of and the power to vote the Shares beneficially owned by it, which power may be exercised by its managers, Messrs. O’Neil and Coulston. Messrs. O’Neil and Coulston, as managers of Ionic, have shared power to vote and/or dispose of the Shares beneficially owned by Ionic. By reason of the provisions of Rule 13d-3 of the Act, Messrs. O’Neil and Coulston may be deemed to beneficially own the Shares beneficially owned by Ionic.

As of December 31, 2022, Mr. O’Neil additionally held directly, and was the beneficial owner of, 350,000 shares of Common Stock. Mr. Coulston does not directly own any Common Stock. Ionic does not have the power to vote and/or dispose of the shares of Common Stock held directly by Mr. O’Neil and thus does not beneficially own those shares of Common Stock.

Item 5. Ownership of Five Percent or Less of a Class.

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following ☐.

Item 6. Ownership of More than Five Percent on Behalf of Another Person.

Not applicable.

Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company.

Not applicable.

Item 8. Identification and Classification of Members of the Group.

Not applicable.

Item 9. Notice of Dissolution of Group.

Not applicable.

Item 10. Certification.

By signing below the Reporting Persons certify that, to the best of their knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under § 240.14a-11.

 After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

EXHIBIT 1

JOINT FILING AGREEMENT

PURSUANT TO RULE 13d-1(k)

The undersigned acknowledge and agree that the foregoing statement on Schedule 13G is filed on behalf of each of the undersigned and that all subsequent amendments to this statement on Schedule 13G shall be filed on behalf of each of the undersigned without the necessity of filing additional joint filing agreements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him or it contained herein and therein, but shall not be responsible for the completeness and accuracy of the information concerning the others, except to the extent that he or it knows or has reason to believe that such information is inaccurate. The undersigned hereby further agree that this Joint Filing Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of which counterparts shall together constitute one and the same instrument.