Olenox Completes CS Digital Acquisition, Launches Gas-Powered AI Data Center Platform
Summary
Olenox Industries has completed its acquisition of CS Digital Ventures for an upfront consideration of $30 million, consisting of $14 million in preferred stock and a $16 million promissory note, plus warrants and up to $20 million in additional preferred stock based on milestones. This closing follows the proposed merger announcement on April 22nd and represents a significant strategic pivot for the company into the energy-intensive data center and AI compute market. The acquisition leverages Olenox's natural gas assets to create a vertically integrated platform, with CS Digital contributing 35 MW of power capacity, $20.6 million in 2025 revenue, and $6.2 million in 2025 EBITDA. This transformative deal occurs amidst a recent reverse stock split and a subsidiary's Chapter 11 filing. Stockholder approval is required for the conversion of the preferred stock and exercise of warrants.
At the time of this announcement, OLOX was trading at $4.75 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $4.7M. The 52-week trading range was $4.10 to $960.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: ACCESS Newswire.