Bullish indicating open at $55-$60, IPO prices at $37
EASTON, PA - Eightco Holdings Inc. (NASDAQ: OCTO), a company specializing in inventory capital and management for e-commerce with a market capitalization of $2.6 million, has completed the sale of its subsidiary Ferguson Containers, Inc. to Reichard Corrugated Products, LLC. According to InvestingPro data, the company faces significant cash flow challenges, with negative EBITDA of $4.7 million in the last twelve months. The sale aligns with Eightco's strategy to concentrate on its primary subsidiary, Forever 8 Fund, LLC, which provides inventory and cash flow management solutions. This strategic move comes as the company's revenue declined by 47% year-over-year, with a current ratio of 0.35 indicating potential liquidity concerns.
Paul Vassilakos, CEO of Eightco and President of Forever 8, expressed satisfaction with the divestiture, which he views as a milestone for both companies in positioning themselves for long-term success. He acknowledged the contribution of Ferguson Containers to Eightco and congratulated Edward and Derick Reichard, Senior Managers at Ferguson Containers and Founders of Reichard Corrugated Products, on their new venture.
The transaction is part of Eightco's ongoing efforts to prioritize its core business, Forever 8, and respond to the growing demand for its services within the e-commerce ecosystem. Details of the Asset Purchase Agreement and terms of the acquisition were disclosed in the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on November 27, 2024.
Eightco (NASDAQ: OCTO) continues to seek opportunities to expand its portfolio of technology solutions through strategic acquisitions, aiming to create value and growth for its stockholders.
This information is based on a press release statement.
In other recent news, Eightco Holdings Inc. held its annual meeting where several key proposals were put to a vote. The company's attempt to change its state of incorporation from Delaware to Nevada did not receive the necessary shareholder support and will not be pursued further. However, shareholders approved an amendment to the 2022 Long-Term Incentive Plan, increasing the total number of shares available under the plan. Additionally, the sale of assets belonging to Ferguson Containers, Inc., a subsidiary of Eightco, to an entity affiliated with its current management was approved.
Frank Jennings and Kevin O’Donnell were re-elected as Class II members of the board of directors. The shareholders also ratified the selection of Stephano Slack LLC as the company's independent registered certified public accounting firm for the fiscal year ending December 31, 2024. These decisions were part of the company's strategic and governance initiatives, as outlined in the 8-K filing with the Securities and Exchange Commission. The meeting saw a quorum with 1,413,150 shares represented in person or by proxy. These developments reflect shareholder sentiment on the company's direction and governance practices.
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