NEW YORK - Nixxy, Inc (NASDAQ:NIXX), a technology-focused holding company trading at $4.44 with a market capitalization of $64.15 million, today initiated a private offering of zero-coupon convertible notes totaling up to $50 million. The notes, available only to accredited investors, are designed to mature one year from the date of issuance and are convertible into common stock at $7.50 per share.
The conversion price is tied to the historical volume-weighted average price of Bitcoin, reflecting Nixxy's innovative approach to financing. Investors will purchase the notes using Bitcoin, which will also serve as collateral for the notes. Alongside the offering, Nixxy will grant noteholders registration rights for the common stock acquired upon conversion.
This financial maneuver comes with regulatory stipulations, as the securities involved have not been registered under the Securities Act of 1933 or other jurisdictional securities laws. Consequently, the notes and any resultant shares of common stock cannot be offered or sold without registration or an exemption from registration requirements.
Nixxy's move to secure funding through cryptocurrency-backed securities reflects its commitment to leveraging advanced technology and data-driven insights to transform traditional markets. While the company maintains more cash than debt on its balance sheet, InvestingPro data shows a current ratio of 0.58, indicating potential liquidity challenges. The company focuses on acquiring and enhancing cornerstone businesses in established industries with innovative solutions to drive growth.
As with all forward-looking statements, this announcement carries inherent risks and uncertainties that could cause actual results to differ from those anticipated. With revenue of $0.67M in the last twelve months and significant price volatility, investors should note that InvestingPro analysis reveals 14 additional key insights about Nixxy's financial health and market position. These cautionary statements remind investors of the speculative nature of such financial endeavors.
The information outlined in this article is based on a press release statement from Nixxy, Inc.
In other recent news, Nixxy Inc. has undergone significant changes. CEO Granger Whitelaw has resigned from his roles as a board member and Chief Executive Officer, leaving the company in search of a successor. The company has also announced the withdrawal of the previously scheduled record date for the spin-off of its subsidiary, Atlantic Energy Solutions, into a new entity, CognoGroup, aiming to optimize shareholder value. In addition, Nixxy Inc. plans to acquire JustGot2HaveIt, Inc., a wholesale gifts business, with projected revenue for 2024 exceeding $10 million.
Further developments include the company securing a global exclusive licensing agreement with GoLogiq, Inc. for the use of the Radix AI platform. These recent developments are part of Nixxy's broader strategy to target an enterprise value of over $1 billion within the next 36 months. The company's growth strategy emphasizes the acquisition of businesses with revenues between $10 million and $100 million and high gross profit margins.
Investors should note that these are recent developments, and further details and timelines will be provided in future announcements. All information provided is based on past articles and statements from the company.
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