Restructuring Complete, Bringing Shareholder Value with New USA-Based CEO Imminent
Nixxy has successfully completed its restructuring process, addressing earlier Nasdaq delisting threats and eliminating debt through strategic partnerships. The company has maintained good standing with Nasdaq and remains current in SEC reporting. A new USA-based CEO will be appointed to replace outgoing President and CEO Granger Whitelaw, who will stay until December 31 or until the transition is complete. The restructuring over the past 10 months has strengthened the company's financial foundation, reflected in increased trading price and volume during the last 3 months. The company plans to focus on expanding into new markets, enhancing operational efficiencies, and driving innovation in product development.
Nixxy ha completato con successo il suo processo di ristrutturazione, affrontando le minacce di delisting da Nasdaq e eliminando il debito attraverso partnership strategiche. L'azienda ha mantenuto un buon stato con Nasdaq ed è attuale nei report SEC. Un nuovo CEO con sede negli Stati Uniti sarà nominato per sostituire il Presidente e CEO uscente Granger Whitelaw, che rimarrà fino al 31 dicembre o fino a quando la transizione sarà completata. La ristrutturazione avvenuta negli ultimi 10 mesi ha rafforzato la base finanziaria dell'azienda, visibile nell'aumento del prezzo e del volume di trading negli ultimi 3 mesi. L'azienda prevede di concentrarsi sull'espansione in nuovi mercati, migliorando l'efficienza operativa e promuovendo l'innovazione nello sviluppo dei prodotti.
Nixxy ha completado con éxito su proceso de reestructuración, abordando las amenazas de exclusión de Nasdaq y eliminando la deuda a través de asociaciones estratégicas. La empresa ha mantenido una buena situación con Nasdaq y está al día en los informes de la SEC. Se nombrará a un nuevo CEO con sede en EE. UU. para reemplazar al presidente y CEO saliente Granger Whitelaw, quien permanecerá hasta el 31 de diciembre o hasta que se complete la transición. La reestructuración de los últimos 10 meses ha fortalecido la base financiera de la empresa, lo que se refleja en el aumento del precio y volumen de negociación durante los últimos 3 meses. La empresa planea centrarse en expandirse a nuevos mercados, mejorar la eficiencia operativa y fomentar la innovación en el desarrollo de productos.
Nixxy는 성공적으로 구조조정 과정을 완료했으며, 이전의 나스닥 상장 폐지 위협을 해결하고 전략적 파트너십을 통해 부채를 제거했습니다. 회사는 나스닥과의 좋은 상태를 유지하고 있으며 SEC 보고도 현재 진행 중입니다. 새로 appointed된 미국 본사 CEO가 퇴임하는 Granger Whitelaw 사장 겸 CEO를 대체할 예정이며, Whitelaw는 12월 31일까지 또는 전환이 완료될 때까지 남아 있습니다. 지난 10개월 동안의 구조조정은 회사의 재정적 기반을 강화시켰으며, 이는 지난 3개월 동안의 거래 가격 및 거래량 증가로 나타났습니다. 회사는 새로운 시장으로의 확장, 운영 효율성 향상 및 제품 개발의 혁신을 추진하는 데 집중할 계획입니다.
Nixxy a réussi à achever son processus de restructuration, en répondant aux menaces précédentes de radiation du Nasdaq et en éliminant la dette par le biais de partenariats stratégiques. L'entreprise a maintenu une bonne position avec le Nasdaq et reste à jour dans ses rapports auprès de la SEC. Un nouveau PDG basé aux États-Unis sera nommé pour remplacer le président et PDG sortant Granger Whitelaw, qui restera jusqu'au 31 décembre ou jusqu'à ce que la transition soit terminée. La restructuration au cours des 10 derniers mois a renforcé les bases financières de l'entreprise, ce qui se reflète par une augmentation du prix et du volume des échanges au cours des 3 derniers mois. L'entreprise prévoit de se concentrer sur l'expansion vers de nouveaux marchés, l'amélioration de l'efficacité opérationnelle et la promotion de l'innovation dans le développement de produits.
Nixxy hat erfolgreich seinen Restrukturierungsprozess abgeschlossen, indem es frühere Bedrohungen der Delistung bei Nasdaq angegangen und Schulden durch strategische Partnerschaften abgebaut hat. Das Unternehmen hat einen guten Status bei Nasdaq aufrechterhalten und erfüllt die SEC-Berichtspflichten. Ein neuer CEO mit Sitz in den USA wird ernannt, um den scheidenden Präsidenten und CEO Granger Whitelaw zu ersetzen, der bis zum 31. Dezember oder bis zum Abschluss des Übergangs bleiben wird. Die Restrukturierung in den letzten 10 Monaten hat die finanzielle Basis des Unternehmens gestärkt, was sich in einem Anstieg des Handels-Preises und -Volumens in den letzten 3 Monaten widerspiegelt. Das Unternehmen plant, sich auf die Expansion in neue Märkte, die Verbesserung der Betriebseffizienz und die Förderung von Innovationen in der Produktentwicklung zu konzentrieren.
- Successfully completed restructuring process
- Eliminated debt through strategic partnerships
- Regained good standing with Nasdaq
- Increased trading price and volume over last 3 months
- Strengthened financial foundation
- CEO transition period creates temporary leadership uncertainty
- Company faced Nasdaq delisting threats earlier in 2024
- Concerns about short selling impact on stock price
- Potential vulnerability to market manipulation
Insights
The successful completion of Nixxy's restructuring marks a critical turnaround, addressing several key financial challenges. The elimination of debt and restoration of Nasdaq compliance significantly strengthens the balance sheet. The 10-month restructuring period has yielded tangible results, evidenced by increased trading metrics over the last 3 months.
The strategic move to transition leadership following restructuring aligns with best practices in corporate turnarounds. However, the company's <money>57M</money> market cap indicates it remains in a vulnerable position, particularly regarding the highlighted short-selling concerns. The emphasis on shareholder protection through specific account management strategies - cash accounts, opting out of securities lending and DRS transfers - represents a defensive posture against market manipulation.
The structural improvements and leadership transition create a foundation for potential growth, but success will heavily depend on the incoming CEO's execution capabilities and the company's ability to protect its market position from short-selling pressure.
The leadership transition strategy demonstrates sophisticated corporate governance planning. The sequential approach - first stabilizing finances, then bringing in specialized leadership - follows established turnaround protocols. The transparency regarding the CEO transition timing and commitment to continuity through the handover period mitigates operational risks.
The company's proactive stance on short-selling protection through shareholder education is noteworthy, though unusual in corporate communications. This level of detailed guidance on share custody options suggests management anticipates potential market challenges during the transition period. The emphasis on maintaining SEC reporting compliance while implementing these changes indicates strong regulatory awareness and commitment to governance standards.
NEW YORK, NY / ACCESSWIRE / December 23, 2024 / Nixxy.com is pleased to announce the successful completion of its restructuring process, a pivotal step in enhancing shareholder value and positioning the organization for future growth. The company, threatened with Nasdaq delisting earlier in 2024, has eliminated onerous debt, resulting in increased shareholder equity and value through strategic partnerships with fresh and supportive investor groups, and is now is good standing with Nasdaq, and remains current in its SEC reporting. This restructuring has paved the way for the introduction of a new USA-based CEO, whose operational expertise will drive the company's strategic direction moving forward.
The restructuring over the past 10 months has not only strengthened the company's financial foundation but has also generated enthusiasm among industry stakeholders. The market's positive reaction so far, as reflected by increased trading price and volume during the last 3 months, underscores the confidence investors have in the company's renewed focus and strategic plans. With a solid financial footing in place, the company is poised to leverage transformative technologies that will create significant value for both shareholders and employees.
"The hiring of a new CEO was always the final component of the company's strategic plan" said Granger Whitelaw, outgoing President and CEO who led the effort. "My job was to help guide the restructuring/turnaround efforts, but with that now complete, a new CEO with extensive industry expertise and a well-established reputation on a national level, can lead the company through its next phase of growth. This leadership will be instrumental in navigating the competitive landscape and capitalizing on emerging opportunities and I will help with the transition fully. While my target date is December 31, I am committed to remaining until the new CEO is fully integrated into the Nixxy family."
As part of the company's commitment to transparency and engagement with its stakeholders, the leadership team has already begun to outline the strategic priorities that will guide the organization in the coming months. These priorities include expanding into new markets, enhancing operational efficiencies, and driving innovation in product development. The company's focus on these key areas is anticipated to yield positive outcomes for shareholders and contribute to overall industry advancements.
As it embarks on this journey, the company remains dedicated to maintaining open lines of communication with its investors and the public, ensuring that all stakeholders are informed of progress and developments.
As the company navigates its plan of future growth using the runway that it has developed over the last 10 months, Granger Whitelaw remarked that "One of the challenges for entrepreneurial companies are the prevalence of shorting activities in the market. It is widely agreed that excessive short sale activity can cause sudden price declines, which can undermine investor confidence, depress the market value of a company's shares and make it more difficult for that company to raise capital, expand and create jobs. This is particularly aggravating for entrepreneurial companies, the engines of new job creation. Short sellers are essentially traders who are hoping a company will experience problems (such as product delays or the inability to raise financing) so they may profit from the setbacks. These traders or trading machines make the most if a company struggles and some short sellers actively work to make that happen."
Granger continued, "This kind of aggressive shorting is made possible by several factors, such as technology that allows trader anonymity without consequence, and anonymous message boards and the like allowing for the spread of misleading information. But another factor is one our shareholders can influence - brokerage firm procedures often make it easy for short sellers to borrow stock without informing the shareowner of the transaction or potential consequences. Our shareholders can prevent this by:
1) holding your NIXX shares in a cash account at your brokerage firm instead of a margin account (a model instruction letter is set forth under the heading "Example Form of Letter to Broker" is attached to the Nixxy website)
2) opting out of any securities lending programs, which should stop your broker from lending your shares
3) moving your shares to a Direct Registration ("DRS") account at the Company's transfer agent, Nevada Agency and Trust Company."
About Nixxy
Nixxy (NASDAQ:NIXX) is committed to transforming traditional markets through cutting-edge technology and data-driven insights. By acquiring cornerstone businesses in established industries and evolving their operations with innovation, Nixxy unlocks new potential and creates opportunities for transformative growth. The company focuses on sectors poised for digital innovation, leveraging data and technology to disrupt conventional business models and drive progress.
Contact Information
Investor Relations
Nixxy
IR@nixxy.com
https://www.nixxy.com
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 Company's business strategy, future operations, acquisition strategy, financial position, potential growth, spin-out transactions, and market opportunities. Words such as 'anticipates,' 'believes,' 'expects,' 'intends,' 'plans,' and 'will,' 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.
Third-Party Data Disclaimer
The financial information regarding the target company's gross merchandise volume, revenues, and profitability presented in this press release is based on data provided by third-party sources and the target company itself. While Nixxy has made reasonable efforts to verify the accuracy of this information, the Company cannot guarantee its completeness or reliability. This data is subject to further due diligence, and actual financial results may differ materially. Investors should not place undue reliance on this information when making investment decisions. Nixxy disclaims any obligation to update or revise this information, except as required by law.
No Offer or Solicitation Disclaimer
This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Risk Factors
Investors should carefully consider the risks associated with the Company's business and the spin-out transaction described herein, including but not limited to: the uncertainty surrounding the timing of the spin-out; the ability to successfully execute acquisitions and integrate acquired companies; the impact of technological changes on the Company's operations; and other risks detailed in the Company's filings with the Securities and Exchange Commission (SEC).
Trademarks and Intellectual Property
All trademarks, service marks, and trade names used in this press release are the property of their respective owners.
Investor Contact Information
For further information, investors are encouraged to review Nixxy's filings with the Securities and Exchange Commission (SEC), available at www.sec.gov, or contact the Company's Investor Relations department at IR@nixxy.com.
SOURCE: Nixxy, Inc.
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FAQ
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