WILMINGTON, DE — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) has successfully acquired a 70% majority interest in Eastern Standard, LLC, a renowned web and branding agency based in Philadelphia. This strategic acquisition aims to bolster Onfolio’s position in the digital services industry.
Eastern Standard, established in 2014, has built a reputation for helping clients develop integrated branding and digital customer experiences. The agency boasts a prestigious client list, including high-profile names such as Neil deGrasse Tyson and Cornell Law. For the fiscal year ending December 31, 2023, Eastern Standard reported approximately $4 million in revenue with $630,000 in unaudited adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
The transaction, valued at $1.66 million, was executed through the issuance of $410,000 in Series A Preferred Shares and two secured promissory notes totaling $1.25 million. Notably, Onfolio completed the acquisition without any upfront cash payment or issuance of common shares, and the financial instruments used are non-convertible into Onfolio common shares.
In addition to the majority stake, Onfolio’s Special Purpose Vehicles, “Onfolio Agency SPV LLC” and “Onfolio Agency SPV 2, LLC,” invested a combined $500,000 to acquire a further 20% interest in the business. This strategic move reflects Onfolio’s innovative acquisition strategy, which emphasizes leveraging SPVs and non-convertible shares.
Commenting on the acquisition, CEO Dominic Wells stated, “We continue to maintain an active pipeline of profitable companies we can acquire and expect that our Special Purpose Vehicle model, along with our non-convertible Series A Preferred Shares, will continue to play an important part of our future acquisitions.”
This acquisition highlights Onfolio’s commitment to expanding its capabilities in digital marketing and branding, aiming to enhance its service offerings and drive growth in a competitive marketplace.
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