Eightco announces Paul Vassilakos as Executive Chairman and Chief Executive Officer and Certain Balance Sheet Improvements
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The appointment of Paul N. Vassilakos as Executive Chairman and CEO of Eightco Holdings Inc. is a strategic move that could signal a shift in the company's business trajectory. With Mr. Vassilakos's extensive experience in public markets and advisory services, investors might anticipate a more aggressive approach towards profitability and expansion. His background in investment banking could bring valuable insights into capital raising strategies and investor relations, potentially leading to improved stock performance.
Furthermore, the amendments to the financial arrangements concerning Forever 8's sale to Eightco, including the conversion of accrued interest into common stock and the deferral of payments, could be interpreted as a confidence boost from the former owners in the company's future. This action may help to alleviate short-term cash flow pressures and could be seen as an alignment of interests between the former owners and current shareholders.
From a financial perspective, the cancellation of $3.0 million in accrued interest and the conversion of $1.1 million of accrued interest into equity are noteworthy. These amendments improve Eightco's balance sheet by reducing its debt burden and interest obligations, which could enhance the company's creditworthiness and financial flexibility. The deferral of interest payments until October 2024 provides a runway for the company to focus on growth without the immediate pressure of debt servicing.
However, such conversions and deferrals also dilute current shareholders' equity and may raise concerns about the company's ability to service its debt in the long run. Investors should monitor the company's future earnings and cash flow statements to assess the sustainability of its capital structure and the impact of these amendments on its financial health.
The e-commerce sector is highly competitive and constantly evolving, with a significant emphasis on efficient inventory management and cost reduction. Mr. Vassilakos's vision for leveraging Forever 8's business model to provide inventory capital solutions to e-commerce sellers addresses a critical pain point in the industry. By focusing on cost-effective and timely solutions, Eightco could strengthen its market position and attract a broader client base.
However, the success of this strategy hinges on the company's ability to execute and integrate technology improvements effectively. Investors should watch for Eightco's upcoming financial reports and operational updates to gauge the effectiveness of these strategic initiatives and their impact on the company's growth and profitability.
Easton, PA, March 18, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) today announced that Paul N. Vassilakos has been named as the Company’s Executive Chairman and Chief Executive Officer. Kevin O’Donnell, who served as the Company’s Executive Chairman since October 2021 and Interim Chief Executive Officer for the last month, will remain a member of the Board of Directors (the “Board”). Brian McFadden, a member of the Company’s Board who had previously served as the Company’s Chief Executive Officer, will be resigning from the Board.
Mr. Vassilakos co-founded Forever 8 Fund, LLC (“Forever 8”), the Company’s largest subsidiary, in July 2020 and has served as a Managing Director of Forever 8 since such time. Mr. Vassilakos has held Board, CEO and CFO positions on various publicly listed companies throughout his career. Additionally, Mr. Vassilakos founded Petrina Advisors, Inc., a privately held advisory firm, where he provided investment banking advisory services for public and privately held companies, helping them grow and list on national exchanges.
“We feel Paul is the right leader for Eightco,” said Kevin O’Donnell, Eightco’s former Executive Chairman and Interim Chief Executive Officer. “Paul’s deep knowledge of the Forever 8 business make him ideally suited to lead Eightco’s growth going forward. We believe his significant public markets experience will help focus Eightco during its road to profitability.”
“I am very excited to be joining the Eightco leadership team,” said Mr. Vassilakos. “I believe Forever 8’s business model and talented management team uniquely position it to capitalize on the current e-commerce environment. As the e-commerce industry evolves through consolidation and technology improvements, I believe Forever 8, alongside Eightco’s efforts to reduce ongoing costs at the parent company level, is in a position to provide a cost effective and timely inventory capital solution to e-commerce sellers to help maximize their profits.”
The former owners of Forever 8, including Mr. Vassilakos, have also agreed to amend the aggregate
About Eightco
Eightco (NASDAQ: OCTO) is committed to growth focused around its existing subsidiaries, including Forever 8, an inventory management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.
For additional information, please visit www.8co.holdings
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “expand,” “advance,” “develop” “believes,” “guidance,” “target,” “may,” “remain,” “project,” “outlook,” “intend,” “estimate,” “could,” “should,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco’s ability to regain and maintain compliance with the Nasdaq’s continued listing requirements; unexpected costs, charges or expenses that reduce Eightco’s capital resources; Eightco’s inability to raise adequate capital to fund its business; Eightco’s inability to innovate and attract users for Eightco’s products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco’s actual results to differ from those contained in forward-looking statements, see Eightco’s filings with the Securities and Exchange Commission (the “SEC”), including in its Annual Report on Form 10-K filed with the SEC on April 17, 2023. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.
For further information, please contact:
Investor Relations
investors@8co.holdings
FAQ
Who has been appointed as the Executive Chairman and Chief Executive Officer of Eightco Holdings Inc. (NASDAQ: OCTO)?
What is Paul N. Vassilakos's background in relation to Forever 8 Fund, ?
What amendments have the former owners of Forever 8 agreed to regarding the notes received in the 2022 sale to Eightco Holdings Inc. (NASDAQ: OCTO)?
What is the significance of Paul N. Vassilakos's appointment for Eightco Holdings Inc. (NASDAQ: OCTO)?
