Bigtoken and BritePool Merge Resulting In Favorable Outcome for SRAX Shareholders

Rhea-AI Summary

SRAX, a financial technology company, has announced the merger of its subsidiary BIGtoken with Britepool, pending regulatory approval. As a result, SRAX will exchange approximately 150 billion shares into preferred shares, which will allow the value of the asset to be recognized on its balance sheet without consolidating BIGtoken's operating results. CEO Christopher Miglino expressed optimism about the merger's potential benefits for shareholders. The deal is expected to close in around 30 days.

Positive

• Conversion of 150 billion shares to preferred shares may enhance shareholder value.
• Deconsolidation of BIGtoken allows SRAX to present a clearer financial picture for investors.

Negative

• The merger is subject to regulatory approval, introducing uncertainty.
• The consolidation of operating results from BIGtoken may have previously obscured true performance metrics.

LOS ANGELES--(BUSINESS WIRE)-- SRAX, Inc. (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, has announced the merger between Force Protection Video Equipment Corp (FPVD), also known as Bigtoken, and Britepool. As a result of the transaction, SRAX’s resulting ownership position will cause the deconsolidation of its subsidiary, BIGtoken, from the date of the close.

Prior to the closing of the transaction which is awaiting regulatory approval, SRAX shall exchange their approximately 150 billion shares into preferred shares with blockers at 4.99% and or 9.99%. This move will allow SRAX to recognize the value of the asset on its balance sheet while no longer requiring the consolidation of BIGtoken’s operating results. This will allow SRAX investors to recognize the true operating performance of the Sequire platform.

“We are excited for the Bigtoken and Britepool teams to come together for this merger. The new combined management team is incredible,” said Christopher Miglino, Founder and CEO of SRAX. “The movement of our position to a preferred share, which is currently worth a significant amount of money, will be very beneficial for our shareholders. The market will now be able to understand the true value that SRAX is generating on its own. We are currently exploring the best way to maximize the value of this asset for our shareholders,” added Miglino.

The merger is anticipated to close in approximately thirty (30) days, subject to customary closing conditions. BIGtoken (FPVD) will file a Current Report on Form 8-K with the Securities and Exchange Commission disclosing the material terms of the merger within four (4) business days.

About SRAX

SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors’ behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit srax.com and mysequire.com.

Cautionary Statement Regarding Forward-Looking Information:

This news release contains "forward-looking statements'' made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "seek" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in our business, and our need for future capital. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in SRAX's periodic reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Reports on Form 10-Q as well as and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210929005669/en/

Bri Kelvin

investors@srax.com

Source: SRAX, Inc.

FAQ

What is the significance of the SRAX and BIGtoken merger?

The merger with Britepool allows SRAX to enhance shareholder value by recognizing the worth of its subsidiary without needing to consolidate its operations.

When is the SRAX merger expected to close?

The merger is anticipated to close in approximately 30 days, pending regulatory approval.

How will the merger affect SRAX's financial reporting?

Post-merger, SRAX will deconsolidate BIGtoken, enabling a clearer view of its financial performance through the Sequire platform.

What changes will SRAX shareholders see from this merger?

Shareholders may benefit from the exchange of shares to preferred shares, potentially reflecting the true value of SRAX's assets.