Business
Upexi Announces Strategic Operational Measures to Monetize Non-Core Assets, Reduce Expenses and Drive Profitability
Company sells Interactive Offers for $1.25 Million in cash and a 2.5% royalty on advertising revenue for 2 yearsCompany has exercised its option to acquire
About this update from Upexi, Inc.
[{"type":"text","content":"Company sells Interactive Offers for $1.25 Million in cash and a 2.5% royalty on advertising revenue for 2 yearsCompany has exercised its option to acquire the remaining 45% of Cygnet Online for cash and stockCLEARWATER, FL / ACCESSWIRE / September 6, 2023 / Upexi Inc. (NASDAQ:UPXI) (the \"Company\" or \"Upexi\"), a multi-faceted Amazon and Direct-to-Consumer brand owner and innovator in aggregation, today is announcing strategic operational measures to monetize non-core assets, reduce expenses and drive profitability.On August 31, 2023, Upexi entered into an Equity Interest Purchase Agreement (\"EIPA\") pursuant to which the Company sold One hundred percent (100%) of the issued and outstanding equity (the \"Interests\") of its wholly owned subsidiary Interactive Offers, LLC (\"Interactive\") for $1,250,000, subject to certain customary post-closing adjustments. In addition, there is an obligation to pay Upexi 2.5% of certain advertising revenues of Interactive for a two-year period post-closing.On September 1, 2023, Upexi also exercised its option to acquire the remaining 45% of the issued and outstanding equity of Cygnet Online, LLC. As a result of the foregoing the Company now owns 100% of the issued and outstanding equity of Cygnet.Upexi CEO Allan Marshall stated, \"The sale allows us to reduce capital expenditures, increase cash flow and invest in our high margin subscription businesses. Simultaneously, we took advantage of the opportunity to buy the remaining equity outstanding of Cygnet Online. These strategic measures will put us in a more predictable position for organic growth in our core businesses.\"About Upexi, Inc.:Upexi is a multifaceted brand owner with established brands in the health, wellness, pet, beauty and other growing markets. We operate in emerging industries with high growth trends and look to drive organic growth of our current brands. We focus on direct to consumer and Amazon brands that are scalable and have anticipated, high industry growth trends. Our goal is to continue to accumulate consumer data and build out a significant customer database across all industries we sell into. The growth of our current database has been key to the year over year gains in sales and profits. To drive additional growth, we have and will continue to acquire profitable Amazon and eCommerce businesses that can scale qu...