Eightco Holdings Inc. (NASDAQ:OCTO), a Delaware-incorporated company specializing in short-term business credit, has amended its at-the-market offering, increasing the aggregate amount from $2 million to $2.75 million. This adjustment was formalized on Tuesday, with the company filing the necessary documentation with the Securities and Exchange Commission (SEC) on Thursday.
The original agreement, established with Univest Securities, LLC as the sales agent, allowed for the sale of common stock shares at a total value of up to $2 million. The recent amendment now permits the company to potentially issue and sell shares up to a total of $2.75 million.
However, the company is restricted from exceeding the number of shares or the dollar amount that is allowed under its Form S-3 registration, which includes adhering to the General Instruction I.B.6, if applicable.
The shares are being offered under Eightco Holdings Inc.'s effective shelf registration statement on Form S-3 (File No. 333-276876), which was declared effective by the SEC on April 18, 2024. The prospectus supplement related to the offering was originally filed on April 25, 2024, and subsequently amended on September 25, 2024, to reflect the new offering amount.
In other recent news, Eightco Holdings Inc. has reported significant improvements in its financial health and operational efficiency. The company eliminated $5.4 million in convertible notes, increased shareholder equity by $23 million, and canceled nearly 5.9 million dilutive shares from warrants and convertible securities. Additionally, Eightco achieved a gross profit margin of 22%, up from 12% in the previous year, and reduced its Selling, General, and Administrative expenses by 23% to $6.9 million.
The company has also regained compliance with two NASDAQ requirements, a development that comes after successfully maintaining a closing bid price above $1.00 for 20 consecutive trading days and reporting stockholders' equity surpassing NASDAQ's minimum requirement. In a separate development, Eightco executed a 1-for-5 reverse stock split, effectively reducing the number of outstanding shares from approximately 8.9 million to around 1.75 million.
These are recent developments for Eightco Holdings, which continues to explore strategic acquisitions to enhance its technology solutions for the e-commerce ecosystem. The company's primary focus is on the expansion of its main operating subsidiary, Forever 8 Fund LLC, which provides inventory solutions for small to mid-sized e-commerce sellers. Eightco plans to secure additional non-dilutive senior debt financing to replenish the capital used to repay the convertible notes, aiming for $100 million in revenues and positive EBITDA in 2025.
InvestingPro Insights
As Eightco Holdings Inc. (NASDAQ:OCTO) seeks to expand its financial maneuverability with an increased at-the-market offering, it's important for investors to consider real-time data and expert analysis. According to InvestingPro, Eightco operates with a significant debt burden and has been quickly burning through cash. These factors are critical when assessing the company's ability to manage additional capital effectively.
InvestingPro Data highlights a market capitalization of $5.7 million, and a negative P/E ratio of -0.6, reflecting challenges in profitability. Despite a revenue of $55.5 million in the last twelve months as of Q2 2024, the company has experienced a revenue decline of nearly 3%, with gross profit margins standing at 14.07%. These figures underscore the financial pressures Eightco faces, which could be exacerbated by the volatility of its stock price, as indicated by the significant return over the last week and the strong return over the last month.
Investors should note that the company does not pay dividends, which may influence investment decisions for those seeking regular income streams. For a deeper dive into the financial health and prospects of Eightco Holdings Inc., including additional InvestingPro Tips, visit https://www.investing.com/pro/OCTO. There, investors can find a broader set of tips to guide their investment strategy.
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