Onfolio Holdings Inc. Expands Portfolio with Eastern Standard
Onfolio Holdings Inc. Strengthens Its Business Portfolio
Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) is making headlines with its latest asset purchase agreement to acquire a significant interest in the assets of Eastern Standard LLC. This strategic move is poised to enhance Onfolio's already diverse portfolio of online businesses, showcasing its commitment to growth in the digital marketing arena.
Details of the Acquisition
The asset purchase agreement marks an important milestone for Onfolio as it expects to finalize the acquisition soon. This agreement encompasses standard representations and warranties, with the closing subject to customary closing conditions. By integrating Eastern Standard into its portfolio, Onfolio aims to leverage the strengths of its acquired assets significantly.
Collaborative Approach to Acquisitions
Just like the previous acquisition of DDS Rank, this new venture will be facilitated through Onfolio’s Special Purpose Vehicle, known as “Onfolio Agency SPV LLC,” alongside an additional entity, “Onfolio Agency SPV 2 LLC,” which will manage a minority stake within the business. This strategic use of SPVs is part of Onfolio’s empowered acquisition strategy to avoid dilution of shareholder equity while funding its growth.
Understanding Eastern Standard’s Market Position
Eastern Standard specializes in digital marketing services, offering a comprehensive suite that includes integrated branding and sophisticated digital customer experiences. With a notable clientele that features prominent names such as Neil deGrasse Tyson and Cornell Law School, Eastern Standard's reputation is well-established.
Financial Insights on Eastern Standard
In the fiscal year ending December 31, Eastern Standard achieved remarkable financial results, generating approximately $4 million in revenue alongside unaudited adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $630,000. These figures underline the firm's solid financial foundation, making it an appealing target for Onfolio.
Insights from Onfolio’s Leadership
Dominic Wells, CEO of Onfolio, expressed his enthusiasm about the acquisition, stating, “Eastern Standard is an excellent business with a strong leadership team. This acquisition represents an exciting opportunity for us.” He further detailed that, like Revenuezen, Eastern Standard serves as a platform that positions Onfolio to explore further acquisitions aimed at both organic and inorganic growth.
Investment Structure and Financial Strategy
The financial structure of this transaction involves a purchase price of $2.16 million for a 90% stake in Eastern Standard. To support this acquisition, the special purpose vehicle's funding program is anticipated to infuse $500,000 in exchange for 20% ownership, positioning Onfolio to maintain a robust foothold with 70% ownership. This is facilitated through $410,000 of Series A Preferred Shares and two secured promissory notes totaling $1.25 million. The financial structure promises dividends and interest, emphasizing non-dilutive funding for existing shareholders.
About Onfolio Holdings Inc.
Onfolio is renowned for its strategy of acquiring and managing a varied array of online businesses. The company’s focus lies on identifying and investing in business sectors with favorable long-term growth trajectories, stable cash flow, and minimal competitive threats. Onfolio prides itself on its expertise in optimizing unoptimized businesses and driving added value through its experienced management team. The acquisition of Eastern Standard is a testament to its growth-oriented strategy, indicative of Onfolio’s vision for expanding its digital service offerings.
Frequently Asked Questions
What is the significance of the acquisition of Eastern Standard?
The acquisition allows Onfolio to enhance its digital marketing capabilities and expand its portfolio, increasing potential for future growth.
How does Onfolio plan to fund the acquisition?
Onfolio will utilize its special purpose vehicle funding program, which ensures that the capital raised is non-dilutive to existing shareholders.
What are Eastern Standard's key services?
Eastern Standard specializes in digital marketing, focusing on integrated branding and enhancing customer digital experiences.
What financial performance did Eastern Standard achieve recently?
In the latest fiscal year, Eastern Standard reported around $4 million in revenues, demonstrating its market presence and revenue-generating capabilities.
What can we expect from Onfolio’s strategy going forward?
Onfolio aims to acquire additional businesses while enhancing its operational capabilities, targeting both organic and inorganic growth in the digital services space.
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