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NEW YORK - SRM Entertainment, Inc. (NASDAQ:SRM), whose stock has surged nearly 80% in the past week according to InvestingPro data, announced Monday it has entered into a Securities Purchase Agreement for a $100 million equity investment to initiate a TRON Token (TRX) Treasury Strategy, according to a company press release.
As part of the agreement, TRON blockchain founder Justin Sun has been appointed as an advisor to the company. SRM also plans to change its name to Tron Inc. The deal represents a significant shift for the company, which InvestingPro analysis shows currently has a market capitalization of $25 million and maintains a weak overall financial health score.
Under the terms of the agreement, SRM will issue 100,000 shares of Series B Convertible Preferred Stock, convertible into 200 million common shares at $0.50 per share, along with 220 million warrants to acquire additional common shares at the same price.
The strategic investment, valued at $210 million if all warrants are exercised, will fund SRM’s TRON Treasury Strategy. The company intends to implement a dividend policy upon successful implementation of a TRX staking program.
"Stablecoins and blockchain are revolutionizing global payments, enabling faster, cheaper, and more transparent transactions," said Sun, noting that TRON has over 310 million international user accounts with average daily transactions exceeding $20 billion year-to-date.
SRM CEO Rich Miller stated, "We are excited to invest into the future of the world’s next generation financial infrastructure."
Dominari Securities LLC is serving as the exclusive placement agent for the offering. The securities being sold have not been registered under the Securities Act of 1933 and were offered only to accredited investors.
SRM Entertainment currently designs and manufactures custom merchandise for theme parks and entertainment venues, including products for Walt Disney Parks and Resorts and Universal Parks and Destinations. InvestingPro data indicates the company maintains strong liquidity with a current ratio of 3.66, though it currently trades above its Fair Value. Subscribers can access 12 additional ProTips and comprehensive financial metrics to better evaluate this strategic transformation.
In other recent news, SRM Entertainment has announced a private investment in public equity (PIPE) financing agreement expected to bring in approximately $5 million in gross proceeds. This financial move involves selling 5,000 shares of Series A Convertible Preferred Stock, convertible into 10 million shares of common stock at $0.50 per share. The company is also issuing warrants to purchase up to 10 million shares of common stock, exercisable at $0.65 per share, with Dominari Securities LLC serving as the exclusive placement agent. Additionally, SRM Entertainment has received an extension from Nasdaq, granting them an additional 180 days to meet the minimum bid price rule of $1.00 per share. This extension allows the company until October 20, 2025, to comply with Nasdaq’s requirements, as they currently meet all other initial listing standards. CEO Rich Miller expressed confidence in SRM’s strategic direction, focusing on expanding product lines and distribution channels. The company has committed to registering shares for future resale with the SEC. These recent developments are based on press release statements and provide investors with updated information on SRM Entertainment’s financial and compliance status.
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