LAS VEGAS - JanOne Inc. (NASDAQ: JAN), a company recognized for its efforts to combat the opioid crisis, has announced a definitive agreement to acquire ALT 5 Sigma Inc., a provider of blockchain financial technology. The transaction is expected to close the week of May 13, 2024, subject to standard closing conditions and regulatory approvals.
ALT 5 Sigma, established in 2018, specializes in blockchain technology to facilitate a new global financial paradigm. Its key offerings include "ALT 5 Pay," a cryptocurrency payment gateway, and "ALT 5 Prime," an over-the-counter trading platform for digital assets. These platforms have been instrumental in enabling merchants to accept cryptocurrency payments and convert them to various fiat currencies or maintain them as digital assets.
The acquisition will see JanOne issue approximately 19.9% of its outstanding common stock to former ALT 5 Sigma shareholders, amounting to 1,799,100 shares, and 34,207 shares of its Series B preferred stock. Upon completion, ALT 5 Sigma and its subsidiaries will become wholly owned entities of JanOne.
Tony Isaac, President and CEO of JanOne, expressed confidence in the strategic advantages ALT 5's solutions offer in the payment processing market, which according to a report by Research and Markets, is projected to grow at a CAGR of 9.5% from 2023 to 2030. Isaac anticipates that the acquisition will facilitate global scaling of ALT 5's profitable business and further expansion of its product portfolio.
Andre Beauchesne, President of ALT 5 Sigma, welcomed the acquisition as a milestone in the company's growth story, expressing optimism about leveraging JanOne's management team and public listing to explore new opportunities.
JanOne's core mission has been to provide innovative solutions to end the opioid crisis, with promising drugs in clinical trials aimed at addressing pain without the risk of addiction. The acquisition of ALT 5 Sigma represents a significant diversification into the fintech space for JanOne.
InvestingPro Insights
As JanOne Inc. (NASDAQ: JAN) gears up for its acquisition of ALT 5 Sigma Inc., investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, JanOne's market capitalization stands at a modest 36.5 million USD. The company's stock has experienced significant price volatility, with a 6-month price total return of an astonishing 670.81% and a 1-month price total return of 46.29%, reflecting a large price uptick in the recent period.
Despite these impressive short-term gains, JanOne has been operating at a loss with an adjusted operating income of -5.45 million USD over the last twelve months as of Q1 2024. Additionally, the company's P/E ratio is currently negative at -0.97, indicating that it is not profitable as of the latest data. This aligns with the InvestingPro Tip that JanOne has not been profitable over the last twelve months. Moreover, JanOne does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
InvestingPro Tips suggest that JanOne operates with a moderate level of debt and has a high return over the last year, which may interest investors looking for growth potential in their portfolio. For those considering an investment in JanOne, it's worth noting that the company's stock generally trades with high price volatility, which could lead to significant price swings. For additional insights and tips, investors can find 11 more InvestingPro Tips for JanOne at https://www.investing.com/pro/JAN. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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