Nixxy Commences Private Offering of up to $50 million of Bitcoin Secured Convertible Notes

Rhea-AI Summary

Nixxy (NASDAQ:NIXX) has announced the commencement of a private offering of up to $50 million in zero-coupon convertible notes to accredited investors. The notes will mature one year from issuance and feature a conversion price of $7.50 per share of common stock. The conversion amount will be determined based on Bitcoin's historical volume weighted average price.

The notes will be purchased and secured with Bitcoin. Nixxy will grant noteholders customary registration rights for shares issuable upon note conversion. The offering, including the notes and potential conversion shares, has not been registered under the Securities Act of 1933 and cannot be sold without registration or applicable exemption.

Positive

• Zero-coupon structure eliminates regular interest payments
• Bitcoin-backed security structure provides asset backing
• Potential to raise up to $50 million in funding

Negative

• Potential dilution for existing shareholders upon conversion
• Exposure to Bitcoin price volatility risk
• Unregistered offering to accredited investors only

News Market Reaction – NIXX

+2.48%

1 alert

+2.48% News Effect

On the day this news was published, NIXX gained 2.48%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, NY / ACCESS Newswire / January 21, 2025 / Nixxy, Inc, (NASDAQ:NIXX), or "Nixxy" or the "Company," today announced it has commenced a private offering (the "Offering"), subject to market and other conditions, of up to $50 million aggregate principal amount of its zero-coupon convertible notes to certain accredited investors, with a maturity date on the one year anniversary date of the date of issuance (the "notes"). The notes will have a conversion price of $7.50 per share of common stock of the Company (the "Common Stock"), with the aggregate principal amount of such notes that can be converted at such conversion price being determined based on a historical volume weighted average price of Bitcoin. The notes will be purchased with Bitcoin, and such Bitcoin will also secure the notes.

In addition, Nixxy plans to grant the noteholders certain customary registration rights with respect to the shares of Common Stock issuable upon conversion of the notes.

The offer and sale of the notes and the shares of Common Stock issuable upon conversion of the notes, if any, have not been registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction, and the notes and any such shares of Common Stock issuable upon conversion thereof may not be offered or sold absent registration or an applicable exemption from such registration requirements.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, including the notes or Common Stock, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Nixxy

Nixxy is a holding company committed to transforming traditional markets through advanced technology and data-driven insights. By acquiring cornerstone businesses in established industries and evolving their conventional operations with innovative solutions, Nixxy aims to unlock potential growth opportunities.

Forward-Looking Statements Disclaimer

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including those regarding the proposed convertible notes offering described in this press release. Words such as ‘anticipates,' ‘believes,' ‘expects,' ‘intends,' ‘plans,' and ‘may,' or similar expressions, are intended to identify forward-looking statements. These statements are based on the Company's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, as they involve inherent risks and uncertainties. The Company disclaims any obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Contact

IR@nixxy.com

SOURCE: Nixxy, Inc.

View the original press release on ACCESS Newswire

FAQ

What is the conversion price for Nixxy's (NIXX) new convertible notes?

The conversion price for Nixxy's convertible notes is $7.50 per share of common stock.

When will Nixxy's (NIXX) Bitcoin-secured convertible notes mature?

The notes will mature one year from their date of issuance.

What is the total value of Nixxy's (NIXX) convertible note offering?

Nixxy is offering up to $50 million in aggregate principal amount of convertible notes.

How are Nixxy's (NIXX) new convertible notes secured?

The notes will be purchased with Bitcoin and secured by Bitcoin.

Will Nixxy (NIXX) provide registration rights for the convertible notes?

Yes, Nixxy plans to grant noteholders customary registration rights for shares issuable upon conversion of the notes.