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LAS VEGAS - ALT5 Sigma Corporation (NASDAQ:ALTS), whose stock has surged over 350% in the past year according to InvestingPro data, announced Monday it has entered into definitive agreements for the issuance and sale of up to 200 million shares of common stock through combined registered direct and private placement offerings, expected to raise approximately $1.5 billion. The company, currently trading at $8.97 and considered slightly undervalued by InvestingPro’s Fair Value model, has seen its market capitalization reach $180.7 million.
The offerings, priced at $7.50 per share, include a registered direct offering and a concurrent private placement. World Liberty Financial, Inc. (WLFI) is acting as the lead investor in the private placement, contributing consideration in the form of $WLFI tokens. Analysts maintain a strong buy recommendation with a $24 price target, according to InvestingPro data.
Following the closing of the transactions, expected around August 12, ALT5 plans to implement a $WLFI Treasury Strategy, which will involve holding approximately 7.5% of the total supply of $WLFI tokens.
The company also announced significant leadership changes that will take effect after the offerings close. Zach Witkoff, Co-Founder and CEO of World Liberty Financial, will become Chairman of ALT5’s Board of Directors. Eric Trump will join as a Director, while Zak Folkman, Co-Founder and COO of World Liberty Financial, will serve as a Board observer. Matt Morgan has been appointed as Chief Investment Officer.
ALT5 intends to use the proceeds to fund the acquisition of $WLFI tokens, establish cryptocurrency treasury operations, settle existing litigation, pay existing debt, and support business operations and working capital needs.
A.G.P./Alliance Global Partners is serving as the sole placement agent for the offerings.
ALT5 Sigma Corporation provides blockchain-powered technologies for tokenization, trading, clearing, settlement, payment, and digital asset custody. According to the press release statement, the company has processed over $5 billion in cryptocurrency transactions since its founding in 2018. The company generated revenue of $18.05 million in the last twelve months, maintaining a healthy gross profit margin of 49.2%. InvestingPro subscribers can access additional metrics and 12 more ProTips about ALTS’s growth potential and financial health.
In other recent news, ALT5 Sigma Corporation has been added to the Russell Microcap Growth, Russell 3000E, and Russell 3000E Growth Indexes as part of the 2025 Russell indexes reconstitution. This inclusion follows its previous addition to the Russell Microcap Index in June 2024. The company has also completed the integration of its ALT5 Prime FIX API with Fundamental Interaction’s trading technology, enabling broker-dealers and Alternative Trading Systems to access digital asset markets using existing infrastructure. In a move to enhance transaction capabilities, ALT5 Sigma activated Lightning Network capabilities on its platform, allowing for instantaneous Bitcoin transactions and laying the groundwork for Tether (USDT) stablecoin transactions.
Furthermore, ALT5 Sigma expressed support for the newly signed GENIUS Act, which establishes regulatory guidelines for stablecoin issuance and oversight in the U.S. The company’s CEO, Peter Tassiopoulos, highlighted the legislation as a significant development for U.S. enterprises. In governance news, ALT5 Sigma appointed David Danziger to its board following the passing of longtime director Richard Butler. Lastly, the company announced that the integration of the Lightning Network, powered by Voltage, allows clients to utilize real-time settlement for Bitcoin and prepares for future stablecoin transactions.
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