RAMAT GAN, ISRAEL - XTL Biopharmaceuticals Ltd. (NASDAQ:XTLB), an intellectual property portfolio company, announced it has entered into a binding term sheet to acquire all issued and outstanding share capital of The Social Proxy Ltd., a web data AI firm. The acquisition is part of XTL's strategy to enhance its asset portfolio with a focus on AI and business intelligence applications.
The terms of the deal involve XTL issuing shares representing 44.6% of its post-transaction capital and paying $430,000 to Social Proxy shareholders. Additionally, Social Proxy shareholders will receive warrants contingent on reaching specific financial milestones within three years.
To facilitate the acquisition, XTL has secured a $1.5 million investment through a private placement, offering investors units of one American Depositary Share (ADS) and one warrant, which can be exercised at $1.20 each within five years.
The transaction, subject to customary closing conditions including due diligence, shareholder approval, and potential government or third-party approvals, will see Social Proxy become a wholly-owned subsidiary of XTL. Social Proxy shareholders are also entitled to appoint two board members to XTL's board of directors.
Shlomo Shalev, CEO of XTL, expressed confidence that the acquisition will add significant value to the company and its shareholders. Tal Kinger, CEO of The Social Proxy, shared enthusiasm for the growth and value creation opportunities under XTL's management.
XTL, which holds IP for treatments of Lupus and Sjögren's Syndrome, is actively seeking additional IP-based assets. The company is listed on the Nasdaq Capital Market and the Tel Aviv Stock Exchange.
This acquisition is based on a press release statement.
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