SAN CLEMENTE, Calif. - The Marygold Companies, Inc. (NYSE American: MGLD), a diversified global holding firm, has announced the initial sale of a secured promissory note to Streeterville Capital, LLC, resulting in $4.38 million in funding. This transaction forms part of a larger $6.56 million private placement aimed at advancing the company's fintech project, Marygold & Co.
The proceeds from this funding round are earmarked for the next-stage initiatives of the Marygold & Co. project, focusing on the marketing of its fintech app, a digital banking alternative. Nicholas Gerber, TMC's CEO, stated that the company invested over $15 million in developing and testing the platform through internal cash and profits from its subsidiaries. With the initial phase completed, the external funding signifies confidence in the app's unique offering and its commercial potential.
Marygold & Co.'s app, which was soft-launched in the U.S. in 2023, features a digital wallet, physical debit card, and a suite of financial management tools, including a PayAnyone™ capability and contactless payment options. The app is available at no cost on both Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) app stores.
According to Gerber, the company plans to expand its U.S. market presence and is preparing to introduce the app in the U.K. later this year, leveraging the client bases of two recently acquired U.K.-based investment advisory firms.
Maxim Group LLC acted as the exclusive agent for the private placement, with a second funding portion expected in January 2025, subject to certain conditions, potentially bringing an additional $2.0 million to TMC.
Securities involved in the transaction have not been registered under the Securities Act of 1933 and are subject to specific conditions for resale in the U.S. The press release clarifies that it does not constitute an offer to sell or a solicitation of an offer to buy the securities.
The Marygold Companies, with a diverse portfolio including financial services, food manufacturing, and security systems, was founded in 1996 and rebranded as a global holding firm in 2015. The information in this article is based on a press release statement.
InvestingPro Insights
The Marygold Companies, Inc. (NYSE American: MGLD) recently secured funding to propel its fintech venture, Marygold & Co., into its next phase of growth. InvestingPro data and tips provide additional insights into the company's financial health and stock performance, which can be valuable for investors monitoring the company's progress.
InvestingPro data indicates that The Marygold Companies has a market capitalization of $61.3 million. The company's P/E ratio stands at -12.91, reflecting its current lack of profitability. However, the company's gross profit margin for the last twelve months as of Q4 2024 is notably high at 73.44%, suggesting that while the company is not currently profitable, it maintains a strong ability to control costs relative to its revenue.
Two InvestingPro Tips highlight important aspects of MGLD's financial situation. Firstly, the company's liquid assets exceed its short-term obligations, which is a positive sign of financial stability. Secondly, the stock has experienced a strong return over the last three months, with a 26.67% price total return, underscoring a recent uptick in investor confidence. It's important to note that MGLD does not pay a dividend, which may be relevant for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on The Marygold Companies, providing a comprehensive look at the company's financials and stock performance. Currently, there are a total of 5 InvestingPro Tips available, which can be accessed for further detailed guidance.
InvestingPro's fair value estimation for MGLD stands at $1.35, which can serve as a benchmark for investors trying to determine the stock's valuation in relation to its current market price. With the next earnings date scheduled for September 25, 2024, investors and analysts will be closely watching for signs of continued growth and profitability from The Marygold Companies.
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