WILMINGTON, DE — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) announced it has completed the acquisition of a majority interest in the assets of SEO Marketing Inc., operating as “DDS Rank.” This transaction was facilitated by Onfolio’s Special Purpose Vehicle (SPV), “Onfolio Agency SPV LLC,” which holds a minority stake in the business.
DDS Rank specializes in digital marketing services for dentists, offering search-engine optimization, paid advertising, and web design. In 2023, the company reported revenues of approximately $310,000 and unaudited adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $190,000.
Onfolio projects that it can double DDS Rank’s revenue and EBITDA within the next one to two fiscal quarters through enhanced marketing efforts and operational improvements.
“DDS Rank was an obvious acquisition for us. While it is much smaller than our next anticipated acquisition and other acquisition candidates in our pipeline, it has very significant untapped potential,” said Dominic Wells, CEO of Onfolio Holdings. “We believe we can increase annualized revenue and profits in the next few months.”
The deal structure is notable for not requiring any cash or common share investment from Onfolio Holdings. The purchase price of $600,000 is being funded through a combination of Onfolio’s preferred shares and a secured promissory note. The SPV is investing $200,000 in exchange for a 34% stake in DDS Rank, while Onfolio will own 66% in exchange for $200,000 of Series A Preferred Shares and a $200,000 secured promissory note due on May 31, 2026. These preferred shares and notes pay dividends and interest but are not convertible into Onfolio common shares.
“Were completing this acquisition without investing any cash or common shares from Onfolio Holdings,” added Wells. “Our special purpose vehicle, which continues to raise capital that is not dilutive to Onfolio shareholders, is investing $200,000 in exchange for 34% of DDS Rank.”
Strategic Acquisition: Onfolio’s Game-Changing Move in Digital Marketing
This acquisition marks a strategic move for Onfolio Holdings, which is eyeing rapid growth in the digital marketing sector. By acquiring DDS Rank, Onfolio is tapping into a niche market with substantial growth potential. The specialized focus on dental practices provides a stable customer base and an opportunity for scaling services.
The use of a Special Purpose Vehicle (SPV) to fund the acquisition without diluting shareholder equity is a strategic financial maneuver. It allows Onfolio to leverage external capital while maintaining control over its equity structure. This approach could be appealing to investors who are wary of dilution and provides a model for future acquisitions.
Dominic Wells’ confidence in doubling DDS Rank’s revenue and EBITDA reflects Onfolio’s aggressive growth strategy. Enhanced marketing and operational efficiencies are key areas where Onfolio plans to make immediate improvements. If successful, this could significantly boost the company’s financial performance in a short period.
Moreover, the acquisition aligns with Onfolio’s broader strategy of diversifying its portfolio and increasing its footprint in the digital marketing space. The expected revenue and profit growth from DDS Rank would contribute to Onfolio’s overall profitability and strengthen its market position.
For Onfolio shareholders, the non-dilutive funding mechanism and potential for rapid growth present a compelling value proposition. The company’s ability to execute similar deals in the future could further enhance shareholder value and drive long-term growth.
In conclusion, the acquisition of DDS Rank by Onfolio Holdings represents a calculated move to expand its digital marketing capabilities while protecting shareholder interests. The strategic use of non-dilutive funding and the targeted growth plan for DDS Rank highlight Onfolio’s innovative approach to business expansion. This move could pave the way for significant financial gains and a stronger market presence in the coming years.
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