SRAX to Deconsolidate BIGtoken Following BIGtoken and BritePool Merger

Rhea-AI Summary

SRAX, Inc. (NASDAQ: SRAX) announces it will no longer consolidate BIGtoken, Inc. into its financials following its merger with BritePool, Inc. This merger, an all-stock transaction finalized today, allows SRAX to adjust its approximate $4M BIGtoken position quarterly. CEO Christopher Miglino emphasized that BIGtoken now operates as an independent entity, aiming to empower consumers to own their data. This strategic change reduces SRAX's financial obligations towards BIGtoken, potentially enhancing its financial health and allowing for more focused growth in its core business.

Positive

• SRAX no longer has to consolidate BIGtoken into its financials, reducing future obligations.
• The merger with BritePool allows BIGtoken to operate independently, potentially leading to growth.

Negative

• None.

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, announces that from this date forward, it will no longer have to consolidate the financials of BIGtoken, Inc (FPVD).

On September 27, 2021, BIGtoken, the leading ethically-sourced identity, data, and insights creation and media activation platform, and BritePool, Inc., a leading identity verification company for advertisers and publishers, entered into an agreement and plan of merger in an all-stock transaction. Today, with the completion of this union, SRAX is no longer obligated to consolidate BIGtoken into its financials. SRAX currently holds their BIGtoken position on the balance sheet at approximately $4M. This will now be adjusted on a quarterly basis to mark the position to market.

“We incubated BIGtoken and provided the infrastructure for BIGtoken so they can be their own company. The management team is one of the best in the industry and we look forward to them achieving the vision of consumers owning their own data,” said SRAX founder and CEO, Christopher Miglino.

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, 2020, its Quarterly Reports on Form 10-Q as well as 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/20211201005797/en/

Bri Kelvin

investors@srax.com

Source: SRAX, Inc.

FAQ

What does the merger between BIGtoken and BritePool mean for SRAX?

The merger means SRAX will not consolidate BIGtoken's financials, reducing future obligations.

How much was BIGtoken's position valued at on SRAX's balance sheet?

SRAX's position in BIGtoken is valued at approximately $4 million.

When was the merger between BIGtoken and BritePool finalized?

The merger was finalized on September 27, 2021.

What is the expected impact of BIGtoken becoming an independent entity?

BIGtoken's independence may lead to enhanced operational focus and potential growth.