LAS VEGAS - JanOne Inc. (NASDAQ:JAN), known for its efforts to address the opioid crisis, has expanded its portfolio by acquiring ALT 5 Sigma Inc., a provider of blockchain financial technology. The transaction, which was finalized today, brings ALT 5 Sigma and its subsidiaries under the JanOne umbrella as wholly-owned entities.
ALT 5 Sigma, established in 2018, offers blockchain technologies aimed at transforming the global financial landscape. Its key services include "ALT 5 Pay," a cryptocurrency payment gateway, and "ALT 5 Prime," an electronic over-the-counter trading platform. The company has reported over $1.1 billion in transactional processing volume last year and over $450 million in the first quarter of this year.
JanOne issued 1,799,100 shares of common stock and 34,207 shares of Series B non-convertible, non-redeemable preferred stock to former ALT 5 stockholders as part of the acquisition. This equity issuance represents approximately 19.9% of JanOne's common stock as of May 10, when the definitive agreements were executed.
Tony Isaac, President and CEO of JanOne, expressed enthusiasm for the acquisition, emphasizing the growth and diversification it brings to the company. Andre Beauchesne, President of ALT 5 Sigma, also conveyed excitement about joining a NASDAQ-listed company and the potential for business expansion that the merger represents.
JanOne is recognized for its dedication to fighting the opioid crisis through innovative solutions, including drugs in clinical trials that offer non-addictive pain management alternatives. ALT 5 Sigma, on the other hand, specializes in secure, transparent, and compliant blockchain solutions for digital asset trading and management.
Further details about the acquisition are available on JanOne's website and in its filings with the Securities and Exchange Commission.
InvestingPro Insights
JanOne Inc. (NASDAQ:JAN) has recently made headlines with its strategic acquisition of ALT 5 Sigma Inc., signaling a significant step towards diversifying its portfolio. In light of this development, investors and market watchers are keenly observing JAN's performance metrics and stock behavior. According to InvestingPro data, JanOne's market capitalization stands at a modest $31.61 million, reflecting its position in the market post-acquisition.
The company's stock price has experienced a notable uptick over the last six months, boasting a 751.28% return, which aligns with the company's aggressive expansion into blockchain technology. Moreover, the recent price movements indicate a strong return over the last three months, with a 233.33% increase. This volatility is a characteristic trait of JAN's stock, as it generally trades with high price volatility, which is an important consideration for investors.
Despite these impressive short-term gains, JanOne's financial health shows areas of concern. The P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 stands at -6.19, and the company has not been profitable over this period. This could be attributed to the company's investment in growth and development, as seen with the ALT 5 Sigma acquisition. Additionally, the company does not pay a dividend, which might be a factor for income-focused investors to consider.
For those interested in a more in-depth analysis, InvestingPro offers additional insights into JanOne's performance and future outlook. There are currently 10 more InvestingPro Tips available, which can be accessed through InvestingPro. For a limited time, readers can use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, providing valuable intelligence for making informed investment decisions.
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