Cryptyde enters into definitive agreement to acquire Forever 8 Fund, LLC, a fintech company, to drive revenue and power future of Web3
September 15 2022 - 7:30AM
Cryptyde, Inc. (NASDAQ: TYDE) today announced that it has executed
an agreement to acquire all of the membership interests of Forever
8 Fund, LLC, an e-commerce fintech company (“Forever 8”), for up to
$56.4 million through a combination of equity, convertible notes
and debt assumption, along with a further $37 million in contingent
cash or equity consideration. The transaction stands to bring
Cryptyde significant revenue in the back half of 2022 and provide a
stable foundation for the future.
Forever 8 provides funding solutions for
e-commerce businesses which sell on Amazon, Shopify and other
leading online platforms. Forever 8 uses proprietary technology to
review product sales data and determine funding potential for
online retail entrepreneurs around the world. Forever 8 has built a
proven, proprietary funding platform that is scalable in a $4.9
trillion per year market according to Statista. On Amazon alone,
there are over 1.9 million third party sellers.
“Forever 8 fills a crucial need for anyone
selling products on the internet. They have proven there is a
demand for their financing model with impressive growth over the
past 18 months,” said Cryptyde President and CEO, Brian McFadden.
“This is a phenomenal opportunity for us as Cryptyde begins to
develop and deploy its core suite of products that will help power
the future of Web3.”
By using a decentralized, SKU-based funding
model to provide funding for e-commerce sellers globally, Forever
8’s process is entirely automated and does not require a personal
guarantee, credit check or traditional lending requirements.
Forever 8’s unique approach directly purchases inventory on its
customers’ behalf, applies a mark-up and collects the revenue as
the products are sold. Cryptyde’s roadmap is expected to allow
Forever 8’s core business to scale, while also expanding out into
new Web3 funding opportunities.
“Cryptyde’s vision for how people will buy and
sell goods and services on the internet is extremely innovative,”
said Forever 8 Co-Founder, Paul Vassilakos. “The Cryptyde team has
laid out a distinct roadmap, including tokenized funding and smart
contract applications, to complement our technology that harnesses
the power of the blockchain to improve e-commerce results and
empower the entrepreneur.”
Consideration to be provided by Cryptyde
consists of the following: (i) up to $21.5 million paid in cash or
equity with a maximum share issuance of 10.75 million shares, (ii)
$27.5 million paid in the form of 3-year convertible notes, (iii)
$7.4 million in assumed debt obligations and (iv) the right to
receive up to an additional $37.0 million of contingent cash or
equity consideration with a maximum share issuance of 18. 5 million
shares upon the achievement of certain earnout milestones. The
additional cash or equity consideration is contingent upon the
achievement of the following three earnout milestones: up to $15.0
million of additional cash or equity consideration if Forever 8
achieves $115 million of cumulative collected revenue by August 31,
2025; up to an additional $12.0 million of cash or equity
consideration if Forever 8 achieves $165 million of cumulative
collected revenue by February 28, 2026; and up to an additional
$10.0 million of cash or equity consideration if Forever 8 achieves
$210 million of cumulative collected revenue by August 31,
2026.
The transaction is expected to be consummated in
the third quarter or early fourth quarter of 2022 after the
satisfaction of certain customary closing conditions. Additional
information on the transaction can be found in a Current Report on
Form 8-K to be filed by Cryptyde with the Securities and Exchange
Commission.
About Cryptyde
Cryptyde, Inc. (Nasdaq: TYDE) is focused on
leveraging blockchain technologies to disrupt consumer-facing
industries. For additional information, please visit
http://www.cryptyde.com/
About Forever
8
Forever 8 Fund, LLC, based in Pennsylvania, was
founded in 2020 for the purpose of developing a unique way of
funding inventory for e-commerce businesses. Forever 8 also has
operating subsidiaries and offices in the EU and United Kingdom.
Forever 8 has approached its sector differently by developing a
technology-driven capital solution focused on taking product risk
directly. When considering a business for its solution, Forever 8
first determines which products qualify for inventory funding
within the customer’s product portfolio, using a proprietary
due-diligence tool that assesses a number of parameters including
sales, supplier terms and product category risk. Once approved and
on-boarded, Forever 8 then purchases the existing inventory from
the customer, immediately freeing up capital for the customer to
focus on growth activities such as sales, marketing and product
line expansion. Going forward, Forever 8 purchases all future
inventory directly from the supplier that the customer requires in
order to satisfy its growth, delivering a long-term, un-capped
inventory capital solution for the customer. For additional
information, please visit http://www.forever8.com/
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements in this press release other than
statements of historical fact could be deemed forward looking,
including, but not limited to, the statements regarding the
proposed acquisition of Forever 8 and its potential future
performance. Words such as “plans,” “expects,” “will,”
“anticipates,” “continue,” “expand,” “advance,” “develop”
“believes,” “guidance,” “target,” “may,” “remain,” “project,”
“outlook,” “intend,” “estimate,” “could,” “should,” and other words
and terms of similar meaning and expression are intended to
identify forward-looking statements, although not all
forward-looking statements contain such terms. Forward-looking
statements are based on management’s current beliefs and
assumptions that are subject to risks and uncertainties and are not
guarantees of future performance. Actual results could differ
materially from those contained in any forward-looking statement as
a result of various factors, including, without limitation: risks
and uncertainties regarding the potential that Cryptyde and Forever
8 are not able to complete the contemplated transaction, and even
if they do complete it, that the expected benefits of the
transaction are not achieved; achievement of the expected benefits
of Cryptyde’s spin-off from Vinco Ventures, Inc.; tax treatment of
the spin-off; market and other conditions; the risks that the
ongoing COVID-19 pandemic may disrupt Cryptyde’s business more
severely than it has to date or more severely than anticipated;
unexpected costs, charges or expenses that reduce Cryptyde’s
capital resources; Cryptyde’s inability to raise adequate capital
to fund its business; Cryptyde’s inability to innovate and attract
users for Cryptyde’s products; future legislation and rulemaking
negatively impacting digital assets; and shifting public and
governmental positions on digital asset mining activity. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. For a discussion of
other risks and uncertainties, and other important factors, any of
which could cause Cryptyde’s and Forever 8’s actual results to
differ from those contained in the forward-looking statements, see
Cryptyde’s filings with the Securities and Exchange Commission
(SEC), including the section titled “Risk Factors” in Cryptyde’s
Registration Statement on Form 10, as amended, filed with the SEC
on May 13, 2022, and Cryptyde’s Registration Statement on Form S-1,
as amended, filed with the SEC on August 12, 2022. All information
in this press release is as of the date of the release, and
Cryptyde undertakes no duty to update this information or to
publicly announce the results of any revisions to any of such
statements to reflect future events or developments, except as
required by law.
For further information, please contact:
Investor RelationsRichard
Brown617-819-1289investors@cryptyde.com
Media RelationsJoe Gerace917-757-5374joe@dittopr.co
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