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SRAXmd sale adds up to $52.5M to parent company (NASDAQ:SRAX) coffer

Tony Zerucha

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Digital marketing and consumer data management and distribution technology services provider Social Reality (NASDAQ:SRAX) has agreed to sell all of the assets of its healthcare and pharmaceutical digital advertising product line SRAXmd to Halyard Capital for total consideration of up to $52.5 million. The deal was signed on July 29 and is expected to close around Aug. 7.

SRAX will receive:

  • $33.5 million in cash;
  • $10 million in Halyard MD, LLC Class A membership units; and
  • A maximum $9 million earn-out upon the buyer achieving certain gross profit thresholds.

The company was assisted by acting financial agents Chardan Capital Markets and Noble Capital Markets and was represented by Silvestre Law Group, P.C.

More information regarding the transaction can be found in the Form 8-K to be filed by the company with the Securities and Exchange Commission.

The structure of the deal will allow SRAXmd and SRAX’s remaining assets to all flourish, SRAX chairman and CEO Chris Miglino said.

“SRAX’s long standing goal has been to leverage our proprietary technology to build and monetize distinct verticals in digital advertising. SRAXmd has consistently demonstrated great opportunity in healthcare and its abilities to operate in a stringent regulatory environment. This transaction gives us the benefit of the long-term growth we have been experiencing in MD, which we believe will be worth significantly more in the future while providing us the capital we need to grow our other verticals and to bring Big Token to market.”

 

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Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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