RAMAT GAN, ISRAEL - In a strategic move to expand its intellectual property portfolio, XTL Biopharmaceuticals Ltd. (NASDAQ:XTLB) has completed the acquisition of The Social Proxy Ltd., a company specializing in ethical AI web data solutions for artificial intelligence (AI) and business intelligence (BI) applications. The transaction, finalized on August 14, 2024, saw XTL Biopharmaceuticals acquire all issued and outstanding share capital of Social Proxy, making it a fully owned subsidiary.
Under the terms of the agreement, XTL issued American Depositary Shares (ADSs), which post-transaction represent 44.6% of XTL's issued and outstanding share capital, and paid $430,000 to Social Proxy shareholders. Additionally, shareholders received warrants contingent on meeting specific financial milestones within three years. The acquisition was approved by XTL's shareholders and aligns with the company's strategy to enhance its asset portfolio with high-potential assets.
XTL also completed a private placement of $1.5 million to support the growth of Social Proxy and to meet the company's financial needs. CEO Shlomo Shalev expressed confidence that Social Proxy's addition would bring significant value to XTL and its shareholders. He highlighted the AI Web Data market's growth potential and praised the acquired technology and team.
Social Proxy, known for its innovative proxy technology that is significantly faster than existing market solutions, operates on a unique ethical IP basis without sourcing other users' IP addresses. This acquisition promises to bolster XTL's position in the AI and BI applications market.
The integration of Social Proxy into XTL's operations includes the appointment of two Social Proxy representatives to XTL's board of directors, which can have up to seven members. Tal Kinger, CEO of Social Proxy, expressed optimism about the merger, anticipating accelerated growth and value creation as part of XTL.
XTL Biopharmaceuticals, which also holds IP for the treatment of Lupus disease (SLE), is actively seeking collaborations to conduct clinical trials and is exploring opportunities to acquire additional IP-based assets.
This information is based on a press release statement.
In other recent news, XTL Biopharmaceuticals Ltd. has been active with significant developments. The company confirmed board re-elections and auditor appointments at their Annual and Extraordinary General Meeting. Alexander Rabinovitch, Shlomo Shalev, and Doron Turgeman were re-elected to the board, with their terms set to expire at the next annual meeting. Somekh Chaikin, a member firm of KPMG in Israel, was appointed as the independent auditors for the fiscal year ending December 31, 2024.
In addition, XTL Biopharmaceuticals has announced the acquisition of AI web data company, Social Proxy Ltd. The terms of this acquisition include issuing ADS's representing 44.6% of XTL's issued and outstanding share capital to Social Proxy's shareholders, and a cash payment of US$430,000. This move is part of XTL's broader strategy to enhance its asset portfolio.
To facilitate the acquisition, XTL raised $1.5 million through a private placement. The Social Proxy shareholders will have the right to appoint two directors to XTL's board. These are the latest developments in XTL's ongoing strategy to acquire additional IP-based assets.
InvestingPro Insights
In light of XTL Biopharmaceuticals Ltd.'s recent acquisition of The Social Proxy Ltd., investors may be interested in the company's financial health and market performance. According to InvestingPro data, XTL Biopharmaceuticals holds a market capitalization of $14.76 million, underscoring its position as a small-cap company in the biopharmaceutical industry. Despite a negative P/E ratio of -27.07, indicating that the company is currently not profitable, analysts have a positive outlook with expectations of net income growth this year.
InvestingPro Tips reveal that XTL Biopharmaceuticals has a strong liquidity position, with cash reserves outweighing its debt and liquid assets exceeding short-term obligations. This financial stability is crucial as the company integrates Social Proxy's operations and explores further IP-based asset acquisitions. Additionally, the company has seen a substantial price uptick over the last six months, with a 193.85% return, signaling investor confidence in its growth trajectory.
For investors considering XTL Biopharmaceuticals as a potential addition to their portfolios, it's noteworthy that the company does not pay a dividend, which may influence investment strategies focused on income generation. For more detailed analysis and additional InvestingPro Tips, there are currently 9 more tips available on InvestingPro's platform specific to XTL Biopharmaceuticals, which can be accessed at: https://www.investing.com/pro/XTLB.
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