Shareholders Approve Reverse Split, Clearing Path for Functional Brands' $142.9M BullionFX Acquisition
MEHA sits 18% above its 52-week low of $0.057 on elevated volume (2.7× avg).
Summary
Functional Brands Inc. shareholders have approved the reverse stock split, removing a key barrier to the company's $142.9 million all-stock acquisition of BullionFX | Alchemy. This follows the binding Letter of Intent and definitive agreement for the acquisition announced in May, and the company's earlier proposals for a reverse stock split to avoid Nasdaq delisting. The acquisition is valued at $142.9 million, vastly exceeding the company's $2.95 million market cap, and is structured as an all-stock transaction, indicating extreme dilution. Clearing this hurdle significantly increases the likelihood of the deal closing, which would fundamentally transform the company's business from wellness products to a gold-backed decentralized finance platform. The company plans to provide additional deal progress updates in the coming weeks.
At the time of this announcement, MEHA was trading at $0.07 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $2.9M. The 52-week trading range was $0.06 to $8.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: TMX Newsfile.