WILMINGTON, DE — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) has announced a strategic move to acquire the majority interest in Eastern Standard LLC, a digital marketing services provider known for its work with clients like Neil deGrasse Tyson and Cornell Law. The acquisition is expected to finalize on October 1, 2024, enhancing Onfolio’s digital footprint and service capabilities.
In a transaction valued at $2,160,000 for 90% ownership, Onfolio will employ its Special Purpose Vehicles (SPVs) to facilitate the deal. “Eastern Standard is an excellent business, with a strong leadership team and another exciting acquisition for us,” said Dominic Wells, CEO of Onfolio. “As we build out the agency side of our portfolio, we continue to both level up the quality of business we own, and increase our capabilities to serve clients and cross-promote services.”
The financial structure involves no upfront cash or issuance of common shares from Onfolio Holdings. Instead, Onfolio Agency SPV LLC and Onfolio Agency SPV 2 LLC will play pivotal roles, with the latter acquiring a minority interest. Onfolio will secure 70% of Eastern Standard through $410,000 in Series A Preferred Shares and two secured promissory notes totaling $1,250,000.
“Our special purpose vehicle funding program, which continues to raise capital that is not dilutive to Onfolio shareholders, is investing $500,000 in exchange for 20% of Eastern Standard,” explained Wells. The SPV program ensures funding without diluting shareholder interests, which is integral to Onfolio’s acquisition strategy.
Eastern Standard, which generated approximately $4 million in revenue and $630,000 in adjusted EBITDA for 2023, is set to complement Onfolio’s expanding portfolio and aid in achieving the company’s profitability goals. With this acquisition, Onfolio aims to pursue organic and inorganic growth, leveraging Eastern Standard as a platform for future endeavors.
Dominic Wells concluded, “This acquisition should help us in our efforts to achieve profitability,” highlighting Onfolio’s broader growth strategy. This move is set to strengthen Onfolio’s market position and enhance its service offerings in digital marketing.
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