Functional Brands Finalizes $142.9M All-Stock Acquisition of Gold-Backed Blockchain Platform
MEHA sits 62% above its 52-week low of $0.057.
Summary
Functional Brands has signed a definitive agreement to acquire BullionFX's Alchemy assets, a gold-backed blockchain settlement platform, for $142.9 million in an all-stock transaction. This acquisition, valued over 40 times the company's current market cap, represents a massive strategic pivot from its existing wellness products business. The deal follows a binding Letter of Intent announced on May 11 and comes as the company faces a Nasdaq delisting threat and is urging shareholders to approve a reverse stock split. This highly dilutive transaction fundamentally changes the company's profile while it navigates significant financial challenges, including a Q1 net loss and a prior "going concern" warning. Closing is subject to due diligence, regulatory approvals, and a valuation.
At the time of this announcement, MEHA was trading at $0.09 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $3.3M. The 52-week trading range was $0.06 to $8.00. This news item was assessed with neutral market sentiment and an importance score of 10 out of 10. Source: TMX Newsfile.