Eightco Announces The Cancellation Of The Forever 8 2022 Merger Earnout Consideration; The Earnout Was Fair Valued At $6.1M And Had A Potential Cash Value Of Up To $37M
Portfolio Pulse from Benzinga Newsdesk
Eightco Holdings Inc. (NASDAQ:OCTO) announced the cancellation of the Forever 8 2022 merger earnout consideration, initially valued at $6.1M with a potential of up to $37M. This cancellation, effective March 17, 2024, is expected to improve the company's shareholder equity by over $7M. CEO Paul Vassilakos emphasized the move strengthens Eightco's balance sheet and capital structure, supporting future growth.
May 07, 2024 | 12:33 pm
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POSITIVE IMPACT
Cancellation of the Forever 8 earnout is expected to positively impact Eightco's financial health by improving shareholder equity by over $7M.
The cancellation of the earnout consideration removes a potential liability of up to $37M from Eightco's balance sheet, directly improving its financial position. This action is likely to be viewed positively by investors, as it signifies a reduction in future cash outflows and a stronger balance sheet. The CEO's statement further reinforces the strategic importance of this move for the company's growth and financial stability.
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