All eyes are on Cryptyde after the company announced that it had enacted a name and ticker symbol change to Eightco Holdings (NASDAQ:OCTO), effective as of this morning. The name change reflects Eightco’s most valuable asset, Forever 8, which focuses on e-commerce inventory management solutions. Forever 8 is projected to generate revenue of $60 million during fiscal year 2023.
CEO Brian McFadden said the following about the news:
“After internal discussions and analysis, our leadership reached the consensus that the crypto industry’s regulatory risks are likely to continue escalating, and the company and our clients would be better served by focusing our full attention on supporting entrepreneurs through our existing subsidiaries Forever 8 and Ferguson Container.”
This name change marks a massive shift in Eightco’s prior strategy of growing through crypto acquisitions. On top of that, the company also enacted a reverse stock split.
Let’s get into the details.
TYDE Stock Becomes OCTO Stock, Plus a Reverse Split
During Eightco’s special meeting of stockholders last March, shareholders voted in favor of a reverse split in a ratio between 1-for-2 and 1-for-50. Following approval, the Board of Directors decided to enact a 1-for-50 reverse split, which became effective as of this morning.
This means that shareholders of 50 shares of TYDE stock will now own only one share of OCTO stock, although the value of their investment will remain the same. Any fractional remaining shares will be rounded up to the nearest whole share. Prior to the reverse split, there were 89.87 million shares outstanding. After the split, there are now 1.79 million shares outstanding.
The reverse split was enacted due to the company receiving a notice of noncompliance from Nasdaq. Between Aug. 22 and Oct. 4 of last year, shares of TYDE stock closed below $1 for 31 consecutive business day, which is a Nasdaq minimum bid price requirement violation. As a result, the exchange gave the company 180 days, or until April 3, 2023, to regain compliance.
Meanwhile, the company’s strategy of growing through acquisitions will remain in place. However, instead of crypto acquisitions, Eightco will focus on e-commerce technology acquisitions. The company’s other business, Ferguson Containers, provides packaging solutions for a variety of customers.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
