Signing Day Sports Acquires Majority of Dear Cashmere

In a strategic move, Signing Day Sports, Inc. (NYSE American:SGN), a computer processing and data preparation service provider with a market capitalization of $1.77 million and trailing twelve-month revenue of $0.58 million, has announced the acquisition of a majority stake in Dear Cashmere Group Holding Company (DRCR). According to InvestingPro data, the company maintains a robust gross profit margin of 71.28%, despite challenging market conditions. The transaction, which was filed with the SEC on February 20, 2025, includes Signing Day Sports issuing shares and preferred stock to the sellers, representing 19.99% and an additional amount that will convert into 19,782,720 shares of Signing Day Sports common stock.

The acquisition entails Signing Day Sports taking over 99.13% of the issued and outstanding capital stock of DRCR, effectively making it an operating subsidiary and consolidating its financial results with Signing Day Sports. This move comes as InvestingPro analysis reveals concerning financial metrics, including a weak financial health score of 1.23 and a current ratio of 0.09, indicating potential liquidity challenges. Subscribers to InvestingPro can access 11 additional key insights about SGN’s financial position. As part of the agreement, the company may enter into additional agreements to purchase remaining shares of DRCR. Moreover, a potential merger is on the horizon, which could result in the issuance of additional common stock to former DRCR stockholders if Signing Day Sports’ liabilities exceed $150,000 at the merger’s effective time.

Maxim Partners LLC is also set to receive shares of Company Preferred Stock amounting to 3.0% of the total outstanding shares after the closing on a fully diluted and as converted basis, according to a letter agreement dated April 18, 2024.

The board of Signing Day Sports has approved the transaction, considering it fair and in the best interest of its stockholders. To facilitate the acquisition, the company has provided historical financial statements of DRCR and pro forma financial information reflecting the merger’s effect.

The financial documents related to the acquisition, including audited balance sheets and statements of income for DRCR, as well as unaudited pro forma combined condensed financial statements for both companies, are attached to the SEC filing as exhibits.

This acquisition is a significant development for Signing Day Sports, as it expands its operational capabilities and consolidates its market presence, coming at a time when the company’s stock has experienced a significant 93.74% decline over the past year. The transaction is based on a press release statement and the information is derived from the SEC filing by Signing Day Sports, Inc. For comprehensive analysis and real-time updates on SGN’s financial metrics, visit InvestingPro.

In other recent news, Signing Day Sports, Inc. has executed a Stock Purchase Agreement to acquire a majority stake in Swifty Global, a company known for its profitable online sports and casino technologies. Swifty Global reported over $128 million in revenues and a net profit of approximately $2.44 million for the fiscal year ended December 31, 2023. This acquisition is expected to enhance Signing Day Sports’ market presence and operational efficiency. Additionally, the company has entered into a $450,000 sponsorship agreement with Goat Farm Sports, making it the exclusive National Recruiting Partner for several high-profile football events through 2026.

In another development, Signing Day Sports has temporarily reduced the exercise price of a common stock purchase warrant held by FirstFire Global Opportunities Fund, LLC. The new exercise price is set at $1.25 per share, down from $14.40, valid until January 12, 2025. Furthermore, Damon Rich has been appointed as the Chief Financial Officer of Signing Day Sports, having previously served as the Interim CFO. These recent developments highlight the company’s strategic moves to expand its market reach and strengthen its leadership team.

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