Eightco Completes Non-Dilutive Capital Raise and Second Debt Extension

Eightco Completes Non-Dilutive Capital Raise and Second Debt Extension

Eightco Holdings Inc.

$7.2 Million Debt Extension and $3.1 Million New Financing to Fuel Expansion Plans for 2025

Easton, PA, Dec. 20, 2024 (GLOBE NEWSWIRE) — Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) today announced that its wholly-owned subsidiary, Forever 8 Fund, LLC (“Forever 8”), completed a series of transactions with respect to its outstanding Series A, Series B, Series C and Series D promissory notes (the “Old Debt”) to create new Series A and Series C promissory notes (the “New Debt”) and retire the Old Debt. The transactions resulted in an extension of $7.2 million of existing debt and the raising of an incremental $3.1 million of debt to fund growth through the end of the fourth quarter of 2024 and into 2025. After giving effect to the foregoing transactions, Forever 8 has an aggregate of $10.3 million principal amount of New Debt.

Forever 8 specializes in delivering inventory and cash flow management solutions to e-commerce businesses and refurbished Apple product resellers. Forever 8 leverages debt financing to expand its purchasing power, enabling it to service more clients and drive sustained revenue growth. Inventory is acquired based on customer demand at wholesale prices, stored in third-party logistics (3PL) warehouses and released to clients once sold, with Forever 8 receiving a markup on its cost. This model minimizes risk while maximizing efficiency, making debt financing both highly accretive and essential to Forever 8’s growth model. Accordingly, this debt restructuring helps Forever 8 expand.

Further, on December 19, 2024, the former members of Forever 8, including Paul Vassilakos, the Company’s Chief Executive Officer, entered into an agreement (the December 2024 Seller Notes Amendment) to further amend certain provisions of the Seller Notes issued to the former members of Forever 8 in connection with the Company’s acquisition of Forever 8 in October 2022. Pursuant to the December 2024 Seller Notes Amendment, the Sellers agreed, among other things, to (i) convert approximately $1.6 million of accrued interest on the Seller Notes into approximately 485,381 shares of Common Stock of the Company ($3.23 per share) and (ii) defer interest and any payments due on the Seller Notes until October 30, 2025.

Mr. Vassilakos stated “The extension from our existing lenders, as well as the incremental capital raised demonstrates the confidence our stakeholders have in our business, while providing capital to help 2025 growth. Our offering in the refurbished apple products market and Amazon sellers’ market continues to show significant demand, meaning all capital raised will be put immediately to work.”

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