WILMINGTON, Del. - Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW), an acquirer and manager of online businesses, has completed the acquisition of a majority stake in the assets of DDS Rank, a digital marketing service provider for dentists, the company announced today. The $600,000 transaction was facilitated through Onfolio's Special Purpose Vehicle, Onfolio Agency SPV LLC, which now holds a 34% interest in DDS Rank.
DDS Rank specializes in search-engine optimization, paid advertising, and web design to help dental practices increase online visibility and patient appointments. In 2023, the company reported revenues of around $310,000 and unaudited adjusted EBITDA of $190,000. Onfolio anticipates it can double DDS Rank's revenue and EBITDA within the next two fiscal quarters through enhanced marketing and operational efficiencies.
The acquisition structure allowed Onfolio to avoid cash or common share investment, instead issuing $200,000 of Series A Preferred Shares and a secured promissory note for $200,000 due May 31, 2026, to own 66% of DDS Rank. The preferred shares and promissory notes are non-convertible and carry dividends and interest.
Onfolio's CEO, Dominic Wells, expressed confidence in the untapped potential of DDS Rank and highlighted the non-dilutive nature of the funding through the special purpose vehicle. Wells also noted that similar acquisition strategies have been negotiated and that sufficient capital is on hand to close such deals, providing Onfolio a clear path to profitability without additional equity capital raising.
About 91% of DDS Rank's revenues come from subscription-based services. The company is known for its effectiveness in improving dentists' search engine rankings and web traffic.
Onfolio Holdings operates by acquiring businesses in sectors with long-term growth prospects, stable cash flows, and minimal risk of obsolescence, with an aim to enhance value through optimization.
This news is based on a press release statement from Onfolio Holdings Inc.
In other recent news, Onfolio Holdings Inc. has reported a significant acquisition, acquiring the business assets of the marketing firm First Page Strategy through its subsidiary RevenueZen LLC. The transaction involved a nominal upfront cash payment and a 36-month revenue sharing agreement. First Page Strategy, a B2B content marketing, SEO, and advertising consulting firm, has reported approximately $190k in revenue for Q1 of 2024, with an annualized revenue run rate of $760k.
This acquisition is expected to result in considerable cost savings and additional revenue for Onfolio by consolidating work previously outsourced. The merger is seen as a strategic move to strengthen Onfolio's position in the online business management sector by enhancing service offerings to clients.
Executives from both Onfolio and First Page Strategy have expressed optimism about the merger, emphasizing the potential benefits for both companies.
InvestingPro Insights
Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW) has been making strategic moves to expand its portfolio, as seen with the recent acquisition of DDS Rank. For investors considering ONFO, InvestingPro provides valuable insights into the company's financial health and market performance.
InvestingPro Tips highlight that analysts anticipate sales growth for ONFO in the current year, which aligns with the company's own projections of doubling DDS Rank's revenue and EBITDA in the coming quarters. Additionally, ONFO's strong return over the last month and three months suggests a positive market response to its business strategies. For a deeper dive into ONFO's performance and future outlook, there are 11 additional tips available on InvestingPro's platform.
InvestingPro Data shows ONFO's market capitalization stands at a modest 7.15M USD. The company's P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 is -1.79, reflecting its current non-profitable status. However, with a significant revenue growth of 71.87% during the same period, ONFO demonstrates potential for future profitability. This is further supported by a strong gross profit margin of 64.0%, indicating efficient management of costs relative to revenue.
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